Can google trends predict cryptocurrencies movements?
When I started to follow the cryptocurrency market I was wondering: Can Google Trends Predict Cryptocurrencies Movements? The answer was yes. I will tell you how I got to this insight.
I come from the marketing world. In the last few years, I’ve been using tools to measure how many people looking for a specific key term on the internet. it helped me to understand the potential of a specific niche. for example, if I wanted to open an online store that will sell organic tomatoes I will check first on sites like google trends, google keyword planner, and ubersuggest.
I will check the competition in this niche, and how many people searching for it. why? because then I will be able to understand the supply and demand. Understanding the supply and demand it’s the fundamentals of deciding if the niche is profitable and how difficult will be to earn money in it.
for example, a few months ago the price of bitcoin climbed above 2000$, because so many people heard about Bitcoin this week I found that the search terms “Coins similar to bitcoin”, “Alternative to Bitcoin” and search terms that close to it raised by thousand percentages!!
That’s because people googled “Bitcoin Price” and saw that it’s 2000$+.
Most of the people probably not familiar with trading virtual currencies and they don’t know that’s possible to buy 0.001 bitcoin, so they think that bitcoin is far too expensive for them and they are looking for an alternative.
Above: google trends graph, shows the popularity of the search term ‘ethereum price’.
Etherum was the second largest cryptocurrency and when people google it, Etherum when up from 131$ to 367$+ in less than a month!
Why I’m Sharing This?
We established CrypTrends in order to provide new & experienced traders insights about the cryptocurrency market. We believe it’s possible to use fundamental analysis in order to predict the movement of cryptocurrencies.
We are working hard to build a super useful free tool for you guys! The tool will gather data from all over the internet and summarize it so you will get a beautiful yet simple trading insights that a 4-year-old can understand.