Once showing a weak link to Reddit comment activity, Bitcoin’s price appears to be losing its correlation with comments on the social media platform. The cryptocurrency data platform ChartStar analyzed nearly 2 billion Reddit comments and used Google’s BigQuery cloud database to derive insights from Reddit activity.
ChartStar’s data dives into the correlation between Reddit activity and Bitcoin’s price, showing that it is no longer the case that Bitcoin’s price can be closely associated with activity on the social media platform.
The effort saw the platform dig through nearly 2 billion Reddit comments, arriving at the conclusion that Bitcoin’s price stopped showing a correlation with comments about 6 months ago.
As opposed to comment activity increasing with price, it seems as if it is the other way around – Bitcoin’s price increased after a surge in Reddit comments. However, the trend is not definitive – it is difficult to tell which is influencing which. Nonetheless, social media remains a useful tool by which one can analyze the market’s momentum.
Social Media Activity Bears a Correlation With Bitcoin’s Price
It is well noted that Bitcoin’s price (and the market in general) has a strong correlation between search engine search volumes and social media activity. The bull run that saw Bitcoin hit its peak value of roughly $20,000 during December 2017 and January 2018 experienced a massive surge in discussion, both on Google and social media platforms like Facebook and Twitter.
Social media engagements have also hit a 2020 high, with cryptocurrency data platform LunarCRUSH stating that unique engagements have hit a volume of nearly 320 million, as BeInCrypto has previously reported.
Will the Halving See More Talk?
In truth, the halving has already resulted in many discussions about Bitcoin. Widely covered in the media, the halving is a periodic event that halves the rewards miners get from mining. The next halving is expected sometime in May and will bring the block rewards down from 12.5 BTC to 6.25 BTC.
Those new to cryptocurrency may be unaware of the halving and its significance, and the anticipation and coverage of the event has potential to draw many more investors into the market, in a somewhat similar vein to Bitcoin drawing retail investors during the bull run of late 2017.
Google search volumes for Bitcoin have stagnant slightly for the past 90 days and is nowhere near its peak during the bull run. However, the same time frame has seen the search phrase “Bitcoin halving 2020” become one of the most searched topics.