If you want to know where the bitcoin price is headed, just ask Google. Datatrek Research’s Nick Colas, an early analyst to track bitcoin, suggested to CNBC that the key to unlocking bitcoin’s next rally is to observe Google search and the ensuing digtal wallet creation, both of which have been on the decline in January amid a bevy of negative developments (exchange and wallet hacks, etc.) The bottom line? Google searches for bitcoin and wallet creation for the cryptocurrency this month compare poorly with December results.
Colas is not the first analyst to make the connection, with ARK Invest’s Chris Burniske previously pointing to a BTC/USD exchange rate that clearly reflected Google search trends. Burniske referred to it as “a virtuous Satoshi cycle,” evidence for which traces back to at least August 2017. Incidentally, today, a Google search of “bitcoin” yielded me 341 million results.