* Google's Interest Over Time:
Numbers represent search interest relative to the highest point on the chart for the given region and time.
A value of 100 is the peak popularity for the term.
A value of 50 means that the term is half as popular.
A score of 0 means that there was not enough data for this term.
Google Trends is an official Google tool that measures the search interest of a specific keyword. The search volume can be measured by country, time period, and more. In addition to these features, keywords can be compared against each other.
The level of searches uses a logarithmic scale from 0-100 in order to measure overall interest. An important thing to note is that if the level of search interest across two or more keywords are equal, this does not mean their amount of searches is equal. Just the overall interest in the keyword.
Google Trends can be an interesting fundamental analysis indicator. Most recently, the buy Bitcoin keyword was pretty stagnant while searches for “Bitcoin Halving” skyrocketed.
This comparison can bring a lot of interesting conclusions.
While it’s hard to say what exactly the effect of more or fewer people searching on Google is, they definitely seem to be correlated.
For example, as the Bitcoin halving approached, more and more people decided to search halving related keywords. While institutional investors are likely to know what the event is and represents, many newbies do not and decided to look it up, which was directly followed by a price rally. That being said, correlation does not prove causation.
While Bitcoin continues to surprise us every day, tools like this can definitely help bring some clarity to price action.
How can you use Google Trends and this tool to improve your Bitcoin trading strategy?
Let us know in the comments!