According to a study by SEMrush, the current price of bitcoin has a 91% correlation with the volume of Google search requests for bitcoin-related terms. The study, based on a database of 120 million US cryptocurrency-themed keyword searches, showed that the Bitcoin price in US dollars rose and fell largely in tandem with the number of search requests for “bitcoin price,” “bitcoin,” and “bitcoin” value keywords.
As bitcoin becomes more expensive, and thus more exciting, more people search online to find out how it is doing. While the study looked at the correlation between searches and prices, it did not — sadly — say whether searches predicted or trailed the bitcoin/dollar exchange rate.
In contrast with other traditional financial assets, cryptocurrencies don’t behave or respond to the same set of market factors as traditional financial instruments but instead, move more closely with “cryptocurrency specific factors,” according to the non-profit’s report, which was published this week.
These factors include investor attention and market momentum, described as the “time-series cryptocurrency momentum at the daily and weekly frequencies.”