Could the increase in the number of search queries about Bitcoin affect its price? This doesn't mean Google has a direct impact on the value of markets, but new research suggests that Google search trends can help investors understand what might happen in the future.
Results from a study titled “The Risks and Returns of Cryptocurrency,” released by Yale University economists Yukun Lin and Alekh Cywinski, show that there is a connection between Google search trends and the value of various cryptocurrencies. In their opinion, the data obtained indicates that the value of markets can rise or fall depending on the increased or decreased attention of investors to them on the Internet. Essentially, the more people search for “bitcoin,” the more its price rises, and vice versa.
According to Cryptoglobe, the report states:
“High investor attention could bring big gains to Bitcoin within 1-2 weeks, XRP within 1 week, and Ether within 1-6 weeks. Using this model, the researchers found that an increase in Google searches for “bitcoin” after two weeks led to 2.3% increase in the price of the cryptocurrency.Similarly, the increase in the number of posts about BTC on Twitter over the week pushed the price of Bitcoin up another 2.5%. On the other hand, the results of the study show that negative attention from investors leads to a drop in prices in the markets. When the number of searches for “bitcoin hack” on Google increased, its price fell by 2.75% over the week.
One explanation for this situation may be that. people simply become uninterested in digital assets when their prices fall. Or is it because when the price drops, it is much easier for users to use trusted information portals rather than searching for information on Google. In any case, this study has some interesting points and provides additional food for thought.
According to cryptodaily.co.uk
You May Also Like
Bitcoin Multisig: Hey, want some magic?
The concept of cryptocurrency was developed by its creators primarily as a transfer of cash into the digital environment of the Internet. But along with the transition from “physical” to “virtual” space, cryptocoins acquired many unique properties that are not available to physical money. And one of these properties is multi-signature.
How to use a prepaid bitcoin card?
There are few prepaid Bitcoin cards on the market at the moment, but finding the best ones seems to be a very difficult task at first. Each prepaid card has complex terms and conditions, as well as fees. Bitcoin debit cards are essentially prepaid cards that use a specific cryptocurrency.
