Nick Colas, co-founder of DataTrek Research, presented an easy way to track the next bitcoin outbreak. While the search for bitcoin's Google search trend may sound simplistic, Colas was the first analyst to track Bitcoin in this way, and his point of view is an important reference.
To put it simply, simply by analyzing Google's search term for the keyword bitcoin, tracking the number of wallets provides a rough idea of market sentiment.
In an interview with CNBC, Colas said:
Google accounts for 60% of the global search engine market share, by observing the number of Google search for bitcoin users we can get a general idea of their interest.
The data we observed is indeed consistent with the price movements of the past 90 days.
The current price of this cryptocurrency is at a downturn. In December 2017, bitcoin prices reached nearly $ 20,000, currently hovering between $ 10,000 and $ 12,000. Price bounces like Colas are related to search trends.
Interested users can definitely explain the bitcoin price outbreak and fall time.
Obviously, the rise in Bitcoin transactions last year was related to Google Trends. Once people begin to be keen on a product, more and more people are interested in it, and they will also show up in Google search results
He said after the Thanksgiving Day in the United States, that is, in November last year, the search volume of bitcoin doubled. While this may sound like no direct connection, the fact is that the amount of Bitcoin wallets has also increased significantly as search volume increases.
A week after bitcoin prices hit a record high, the price of the currency started to fall and Google's search volume also dropped.
Colas revealed that it holds about 0.25 bitcoins. Despite rising global regulatory calls, he does not think the high volatility of Bitcoin is a problem. At present, the public fanatical about such a cryptocurrency that has not yet been clearly defined has aroused the vigilance of the legislature.
In addition, he also pointed out that blockchain technology in the long-term application of great significance. He is very bullish on cryptocurrencies, both valuable as a tool or as an architecture.