Does Google Have Any Impact On The Price Of Bitcoin?
Is it possible that the increase in the trend towards search terms related to bitcoin can help change the price of bitcoin? Obviously, Google’s search has a direct impact on the value of markets, but new research shows that Google Search trends can be used to help investors predict what might happen next.
The study, entitled “Risks and Returns of the Cryptocurrency” conducted by economists at Yale University Yukun Liu and Oleg Tsyvinski, revealed a correlation between the trends of Google and the cost of various cryptocurrencies. They believe that the data obtained indicate that market changes in the markets can be associated with an increase or decrease in the attention of investors on the Internet. In fact, the more people search Bitcoin, the higher the price and vice versa.
Traditional financial markets react to a certain set of factors that almost do not affect cryptocurrencies. Bitcoin and others are characterized by a specific set of circumstances. Among them, first of all, the dynamics of the market and the attention of investors, as well as other things, which in the study were combined into “time series of crypto-currency dynamics on daily and weekly frequencies”.