[Xangle Signal] Google Trend Index (Interest) vs Price of Cryptocurrency
- Interest in an asset has shown correlation with its price.
- Interest in Bitcoin and Ethereum declined last September. Ethereum, especially, recorded a greater decline ever since the price of Defi projects was adjusted. Prices of both cryptocurrencies are also shown to be weak.
- In the case of Bitcoin, Xangle Research looked at monthly interest rate and relevant search items from 2015: the foreign exchange rates of certain regions, movements of traditional financial assets, or use cases of Bitcoin were quite frequent.
Bitcoin's disclosure of its Google Trends in September has been announced. According to Xangle, interest in Bitcoin dropped by 27% in September. At the same time, Bitcoin's price also declined by 10%. As for Ethereum, the level of interest was very low in contrast to DeFi, which was regarded the 'hot potato' last July and August. Interests in Ethereum also fell sharp by 64% and its prices by -25% in September.
Market interest is usually bound to affect asset prices. As such, the level of interest that investors have in assets is one of the critical indicators for investment decisions. In fact, when one looks at the chart of interest level in Bitcoin and Ethereum during 2020, they move parallel to the price chart.
In terms of absolute figures, interest in Bitcoin has still been higher than that of Ethereum. When looking at each coin's movement, Bitcoin received the most attention in May during its third halving. From July to August, when the DeFi rally has drawn attention within the crypto asset market, it's gradually declined again since its reflective effects. Bitcoin prices had also been rising steeply from Black Thursday from March to May and had formed the box office around June and July. It then rose again in August, right before undergoing a moderate downward trend. Ethereum, on the other hand, has shown a sharp rise in August due to the DeFi craze, with its price soar. Since September, the DeFi coins have been sharply adjusted, and Ethereum has also shown its interest level and price decline significantly.
Bitcoin is still undergoing the lowest record of interest level this year, and its price remains in the box without much change. Besides, the Xangle Research team have looked into historical data of interest in Bitcoins, price trends, and related keyword during the time. When the market shows interest in Bitcoin in the near future, the assumption could be made from associated keywords or topics from the past. Closer attention will be needed to determine whether Bitcoin could bring back the market interest with its price increase.
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