A Dutch economist says there’s a strong correlation between Google search and the movement of Bitcoin price.
Joost van der Burgt, a Dutch economist revealed his research findings on cryptocurrency price movement to CNBC, on which he claimed a strong correlation between the number of Google searches and cryptocurrency price, particularly Bitcoin price.
In his study, van der Burgt compared BTC price movements to Google searches for cryptocurrency. He found that before the price plunged from its all time high early this year, the correlation was almost perfect. “Every time bitcoin was in the news, be it positive or negative, the price went up accordingly,” the economist explained.
However, things have changed since end of last year, which coincidentally was also the time when BTC futures market was introduced for the first time. He suspected the introduction of futures might have deflated the bubble before it got to a level where it might burst completely.
As a comparison, the economist who acts as a policy advisor to the Dutch National Bank also compared other popular assets’ prices, like gold with Google searches, and found that there are no correlations between the two. Furthermore, he added that the beginning stages of a BTC bubble often fell short due to the “panic phase”, or as he said, “It wasn’t really panic, it was more of a scare.”
This is not the first time a study concluded that BTC price is highly related to Google searches. A Yale economics professor also found the number of mentions in Google search have a significant impact to the return of cryptocurrency, as Chepicap reported just hours ago.