Bitcoin Price Tumbles as Google Trends and Trading Volumes Decline

The Bitcoin price is falling and has fallen approximately 7% in the last 48 hours. This can be observed as the trading volumes are falling and the retail investors are using less of the Google search using the keyword Bitcoin, which means loss of interest among the investors. In fact, the Google trends are showing the loss of interest after the aggressive buying in December.

Low Bitcoin Trading Volume

Bitcoin price plunged after its trading volume has fallen to a two-year low. As of today, the bitcoin price was approximately at $10,656 level after rising to $11,400 level just hours earlier.

Further, it is seen that during the past few months, bitcoin’s trading volume is not rising. As of March 7th, the trading volume was at low of 654,108, which is confirmed bitcoin by the transactions taking place around the world that day. All time record low trading volume of Bitcoin is 180,000, which occurred on February 26th, 2018. Those volumes were the lowest since March 2016, when bitcoin prices were in the range between $380 and $410 per token.

Moreover, it is also observed that all the top 10 most valuable cryptocurrencies in the world, have all posted significant price drops during the past 24 hours, with bitcoin, Litecoin, Ethereum, Bitcoin cash, Tron, Neo, Eos and newcomer Huobi Token prices falling more than 5%.

There are mixed views related with the price of bitcoin in the future. While in February 2018, the Winklevoss twins, Cameron and Tyler, had forecasted bitcoin’s price could reach to a $320,000 a token in a few years. Economist and Harvard professor Kenneth Rogoff predicts that BTC prices are more likely to fall to $100 a token in a few years.

Google Search Trends vs. Bitcoin Price

Data available with Google Trends shows there is a positive correlation between Google search and price movement. This is proved as the New Year searches with the word Bitcoin have fallen about 80% and the bitcoin prices have also fallen from that time. Further, it is seen that the investors are taking out money from Bitcoin and putting it into other cryptocurrencies like Ethereum or Litecoin and the Google search percentages also reinforce that by showing gains in the searches of those coin names.

However, the trends of the Google searches may closely shows the retail investor interest (single person or small groups) and movements, but it do not necessarily reflect the interests of institutional investors. The analysts who follow institutional money are observing hedge funds putting aside large amounts of revenue for crypto investment though they still continue to research and study trends in the markets.

Overall, both the trading volume and trends of the Google searches reflect the retail investor’s interest in Bitcoin, which is being reflected in the prices.