It turns out Google Trends is an effective way to track the growth of Bitcoin as well as altcoins. By the end of this article, you’ll realize why that should come as no surprise.
Every market follows the same pattern, only they’re at varying speeds. Having the tools to more accurately predict future events makes a difference, and makes you less likely to make trades based on emotion. There is a goldmine of information and data which can be extrapolated from free platforms such as Google Trends, and today I’m going to teach you how to use it for the purpose of cryptocurrency trading.
Google Trends reports on the search volume of any keyword you can think of, with data going back five years and the ability to compare five different search queries simultaneously. It also gives you the ability to search by category, subregion and related search search queries.
By searching for ‘BTC USD’ you are able to see the engagement of active Bitcoin users checking in on the price. In the chart shown above, the baseline denotes the exponential growth of active users, while the height shows engagement levels.
The search ‘BTC USD’ serves as a proxy for the engagement of active bitcoin users as they check the daily price. In the chart above, the baseline denotes the exponential growth of active users, while the height above the line illustrates their engagement levels.
To decide which search terms should be used, put yourself in the shoes of the audience. After learning all about a variety of successful people, it was clear that empathy is an important ingredient. You have to imagine what is motivating people and what their response will be to a variety of events.
Based on that logic, think for a minute about what people were talking about in November of 2017. Over Thanksgiving Dinner, millions of people were educated on Bitcoin, which is a contributing factor in the value surging up to nearly $20,000.
In 2017, cryptocurrency was a new concept to most people, so people began searching on Google for “how to buy Bitcoin”. Take a look at the graphic below.
Based on the search volume for the queries “how to buy Bitcoin” and “Bitcoin”, you can see that a pattern is emerging. In July of last year, Bitcoin had an average search volume of 11, which is also roughly the same amount of people searching.
It also becomes evident that when Bitcoin decreases in value, so does public interest. As you can see in the graphic above, “how to buy Bitcoin” surged in public interest beginning in late October, with it’s peak between December 3rd to 9th.
It also appears that the same pattern is emerging in 2018, with the search volume increasing at roughly the same rate.
This shows that Bitcoin is not in a bubble, as well as the seemingly endless potential for growth.
Join our list
Subscribe to our mailing list and get interesting stuff and updates to your email inbox.