When will Bitcoin usher in the next explosion? Google Trends may tell you the answer

Nick Colas, co-founder of DataTrek Research, has come up with a simple way to track the next Bitcoin explosion. Although studying Bitcoin's Google search trends sounds like an overly simplistic method, Colas is the first analyst to track Bitcoin in this way, and his views are of great reference value.

Simply put, by analyzing the Google search trends for the keyword Bitcoin and tracking the number of wallets, you can get a rough idea of ​​market sentiment.

In an interview with CNBC, Colas said:

Google accounts for 60% of the global search engine market share. By observing the number of netizens searching for Bitcoin on Google, we can roughly understand their interest.

The data we observe is indeed consistent with price action over the past 90 days.

The price of this cryptocurrency is currently at a low point. In December 2017, the price of Bitcoin reached nearly $20,000, and it is currently hovering between $10,000 and $12,000. Colas said that this price rebound is related to search trends.

The level of interest among netizens can definitely indicate when the price of Bitcoin will explode or fall.

It is clear that the increase in Bitcoin trading last year is related to Google Trends. Once people become enthusiastic about a product, more and more people will be interested in it, which will also be reflected in Google search results.

He said that Bitcoin searches doubled after Thanksgiving in the United States, which was in November last year. Although this may not sound directly related, the fact is that during the period of increased search volume, the number of Bitcoin wallets also increased significantly.

A week after hitting a record high, bitcoin prices began to fall and Google searches also declined.

Colas said he owns about 0.25 bitcoins. Despite growing calls for regulation around the world, he doesn't think bitcoin's high volatility is a problem. The current enthusiasm for this undefined cryptocurrency has aroused the vigilance of legislators.

In addition, he also pointed out that blockchain technology has great significance in long-term applications. He is optimistic about cryptocurrency, which is very valuable both as a tool and as a framework.