What do you do when you don’t know something? Google it, of course — which is what a lot of people did at the height of the recent Bitcoin bubble.The problem is: not so many people are Googling it now. According to research from Dutch National Bank policy advisor Joost van der Burgt, there exists an almost-perfect correlation between the first and foremost cryptocurrency’s price movements and Google searches for Bitcoin — at least, until the bubble burst. Below is the chart of Bitcoin’s interest over time, courtesy of Google Trends: Now, compare that to Bitcoin’s price chart over the same time period: As you can see, there is an obvious correlation between the two. However, Google searches have not kept up with Bitcoin’s price — with the latter experiencing various rallies throughout the year. Van der Burgt’s correlation, as published on CBNC, illustrates this exact point:
Hype DrivenThe apparent lack of Google searches for Bitcoin stems from the significant decrease in the mainstream attention.
Blame the FuturesThis correlation all but ceased, however, when the market took a turn for the worse. Specifically, Van der Burgt blames the introduction of bitcoin futures contracts.
Keep CalmBitcoin’s bear market in 2018 has been undeniably brutal. Still, the Dutchman wouldn’t call the market leader’s dramatic price decline a “panic.” What do you think of Joost van der Burgt’s correlation? Do you think Bitcoin will fully recover in the coming months? Let us know your thoughts in the comments below!
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