Google Searches for “Bitcoin” Drop by 75% this Year
Cryptocurrencies have been Struggling
Bitcoin prices have been in the struggle from the time this year started and also the capability of the major cryptocurrencies to capture the internet interest. The searches for “bitcoin” have dropped more than 75% from the years start and halved in the last three months. This is according to the google trends research.
Nicholas Colas who is the founder of the DataTrek Research organization said that this might pose to be a bad sign for the prices.
Colas said in an e-mail;
“We use Google Trends to track search queries for ‘bitcoin’ as a proxy for potential new buyers. Bitcoin needs a new narrative in order to re-establish global attention.”
Google trend relies on numbers for the representation of the search interest which is relative to the highest point for the given time and region. The peak popularity for the term stands at a value of 100.
Bitcoin interest over time
Colas who is involved in the use of wallet growth as interest proxy declared that a small demand was a determinant for the prices of Bitcoin. Wallets are involved in the storing of the private and public keys which are then used in the trading and receiving of cryptocurrencies.
New wallet growth was recorded to be around 2% in May and April and also first quarter compounded monthly wallet had a growth of around 3.7% during this year. The last quart of 2017 when the cryptocurrency price was around $20,000, the wallet growth compounded monthly was around 7.6%.
“The comparisons between the 2017 back half comps (excellent) and 2018-to-date (poor) are stark and explain essentially all of bitcoin’s fall from grace this year. Simply put, history shows bitcoin wallet growth needs to be +5%/month to see meaningful price appreciation.”
Bitcoin prices have been dropping by 50% this year and on Monday, it was trading just below the $7,500 price level. Therefore. The world’s largest crypto dropped with more than 1,300% during this year.
“This dog will have its day, but today isn’t it. While we love the idea of bitcoin (and own a little ourselves), we are not fans of buying it at current levels.”
The google searches for the other cryptocurrencies has also dropped. For Ethereum which is the second largest, the searches have dropped for close to 70%. XRP searches have also dropped sharply by 87% from January and those for Bitcoin cash have also dropped by 82%.
As for EOS which is the fifth largest crypto by market cap, the searches have gone to the opposite direction as the google based searches have improved by around 97%.
However, most of this could be due to the recent fundraising efforts through ICO. The Block.one startup raised close to $4 billion through cryptocurrency.