Google search volumes for the keyword ‘bitcoin’ have dropped to levels that mirrored Bitcoin prices of around $5,000.
The drop in search has been around 80% since the start of the new year. Google search data has often been used as an indicator for market trends and has had an interesting correlation with the Bitcoin price over the past year.
The search data also breaks up the numbers between countries to see if the searches are skewed to a particular country or region. The search for ‘bitcoin’ is still listed as a global trend whereas Ethereum shows a trend in North America, Eastern Europe, and Asia.
The volume of search data is not the only indicator of the Bitcoin price. Trading volume has hit a massive decline and this could indicate a lack of confidence in the cryptocurrency to date. The combination of dwindling search volumes and a lack of transaction volume may be a strong source behind Bitcoin’s recent demise.
Consumers, alternatively, may not need to search for ‘bitcoin’ because they may already have done that and may still be very interested in Bitcoin investments. One may expect consumers to search for different keywords now that they already know the basics of the cryptocurrency. A consumer, for example, may be less likely to search for terms like ‘bitcoin tutorial’, ‘what is bitcoin’, and ‘is bitcoin fake money’.
An analysis of consumer confidence may be better placed with analyzing the traffic say towards Bitcoin YouTube personalities to see whether the interest has truly waned. There may be other ways to measure interest in the cryptocurrency and Google searches are not the only method.
A clever innovator may notice this gap and may invent a Bitcoin index that measures popularity on social media platforms. The YouTube personality Sentdex has already started to create a Bitcoin sentiment index that can be viewed online for free.
Other search terms that may be of interest are terms such as ‘binance’ or ‘coinbase’. These terms may be appropriate choices for this point in time because people may be moving on from learning about Bitcoin to investing heavily in the currency.