Research shows growing correlation between the price of Bitcoin and Google searches since 2017.
In 2017, Bitcoin was reaching the general public. The price soared and people were attracted to do some research on the digital asset. The number of searches and the number of people who buy bitcoin at retail have been correlated in the past and we may be starting to see a similar situation emerge in 2020.
According to SemRush, search engines are seeing bitcoin queries go back to where they were in 2017, when BTC reached $ 20,000.
The analysis of CryptoCompare cited that in January 2017, google users searched for bitcoin 3.3 million times. At that point, Bitcoin’s price was just $ 1000. But when bitcoin reached $ 20,000 in December, users searched for the term “bitcoin” 45.5 million times.
Later, in March 2020, when the price was falling, Google’s “Bitcoin” searches dropped to just 6.1 million, down 86 percent.
Perhaps the most interesting statistic seen by CryptoCompare’s analysis was that bitcoin-related research experienced an increase in volume when the stock market crashed and the traditional financial sector suffered an impact.
In March, when the financial world was in serious turmoil, bitcoin searches jumped to 13.6 million. Many experts in the field of cryptocurrencies saw this particular spike in research as a sign that investors were considering BTC and other cryptocurrencies as a hedge against the volatile stock market.
The reason most experts believe that the bitcoin price is ready to surpass stocks in 2020 is the third halving. The supply to mining companies has been cut in half and demand is expected to bring the price to an all-time high. Earlier this year, the term “bitcoin half” reached all-time highs in search volume.
During this period of intense searches for bitcoin-related terms, the price also increased. The relationship between the value of a bitcoin and its popularity on search engines was highlighted in April by Mike Alfred, CEO of Digital Assets Data.
“We are hearing and seeing a growing interest in retail. The unprecedented era of stimulus and printing of money has pushed many people into bitcoin as an alternative monetary system. “
Buying bitcoin is still a rarity for the majority of the population. During peak periods, it is obvious that more people will be introduced to the idea of digital assets and a flood of newcomers will be forced to do their own real research.