Bitcoin Price Estimate with Google Search
According to research done, search data about Google’s Bitcoin can be used to predict the direction of Bitcoin price. A group of researchers from the University of Cagliari compared the 2015 Google search data with Bitcoin’s transaction volume. Interesting results are noteworthy in the study.
The article explaining the details of the study reveals that Google has a relationship between the search volume of the “Bitcoin” word and the global Bitcoin buy-sell transaction volume.
The study by Martina Matta, Ilaria Lunesu and Michele Marchesi using the Pearson correlation method shows a correlation between two variables with a correlation value of 0.6. While researchers underline that Google trend data may be a good predictor, this relationship between variables can predict the volume of buying and selling operations to increase about 3 days in advance.
A study conducted at the Swiss ETH Zurich University in 2014 revealed a hypothesis that searches made on search engines and interest shown on Bitcoin on social media platforms such as Twitter or Facebook caused large price fluctuations.
Another work on the subject was at the University of Nicolaus Copernicus in Poland. According to the study results; Bitcoin prices have also been observed to trend upward in time intervals when bitcoin is searched with high volume.
The academic studies mentioned above point to an important point. Google, which makes up almost all of the internet searches on a global scale, could be an asset to investors in anticipation of the Bitcoin price trend. On the other hand, the increase in the value of Bitcoin may be hidden in the awareness of Bitcoin and in reaching large masses that have not yet heard of Bitcoin.