The volume of Google searches for bitcoin and ethereum appear to be inversely correlated during August – with bitcoin queries generating new all time highs whilst ethereum searches have declined. This search data reflects overall market trends, with bitcoin comprising an increasingly dominant share of all cryptocurrency market capitalizations.
Google Searches for Bitcoin Are Making New Highs
Google searches for the term ‘bitcoin’ have reached all time highs this month. The influx of searches coincides with a decline in queries for ‘ethereum’, reversing months of relative correlation between searches for both bitcoin and ethereum. Fluctuations in the volume of search queries for ‘bitcoin’ and related terms are viewed by many traders as a barometer of market sentiment from outside of seasoned cryptocurrency market participants.
In addition to bitcoin’s continual establishment of new all time price highs, many are attributing the influx of search volume to the recent resolution of bitcoin’s scaling debate, and alleviation of fears pertaining to a hard fork. The soft fork comprised the resolution of bitcoin’s most significant fundamental uncertainty, reaffirming its status as the leading cryptocurrency project.
Searches for Ethereum Appear to Be Inversely Correlated With Bitcoin
The decline in searches for ‘ethereum’ has likely been a consequence of several factors – including bitcoin’s domination of cryptocurrency-related media coverage, recent hacks sustained by the ethereum network serving to deter the interest of individuals outside of the cryptocurrency sphere, and the failure of the highly anticipated ‘flippening’ event (Ethereum overtaking Bitcoin in market cap). The decline in search volume also comes following several months of record breaking search volume, rendering the likelihood of an impending reduction in search traffic very high.
The inverse correlation regarding ‘bitcoin’ and ‘ethereum’ search traffic appears to be occurring in unison with a resurgence in the total share of all cryptocurrency market capitalization that is attributed to bitcoin, with come analysts inferring that the spike in search volume merely comprises an accurate reflection of changing market dynamics.
Do you think that Google search trends can comprise an accurate representation of dynamics within the bitcoin and ethereum markets? Share your thoughts in the comments section below!
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