Google Search Uptrend Peaks in Short Term, Will Bitcoin Follow?

Bitcoin hit $40,000 only after starting the new year at a price below $30,000, and recall that less than a year ago it was trading below $4,000.

The asset’s trajectory has been “only going up,” but could the Google search trends for the first-ever cryptocurrency crash be a sign that an uptrend is also on the horizon soon?

The world is watching in awe at the latest Bitcoin rally; surging from below $4,000 to over $40,000 in just one year is no small feat and required an influx of over $500 billion in capital.

Institutions have been happy to prepare tens of thousands of dollars for each Bitcoin, and this time, everyone from ordinary people to celebrities have been included in the FOMO sentiment.

Throughout 2019 and early 2020, one indicator that analysts often looked for when a bull run was starting was to look at Google Trends and compare its trend to past Bitcoin booms.

In the past few months alone, as the cryptocurrency has begun to struggle upwards, even breaking through $40,000 per BTC after a surge on Twitter last night. Although it performs well in Google Trends, it has recently begun to trend downwards.

Is Google Trends a “poor man’s sentiment indicator,” as one chartered financial analyst and cryptocurrency investment manager puts it?

Timothy Peterson of Cane Island Global Macro believes that as the Google uptrend collapses, the price of Bitcoin may soon follow.

The cryptocurrency has been on the second-best uptrend in history, easily surpassing the 2017 high, making the asset price at that high appear on the charts for the first time.

The latest rally has the potential to surpass the levels seen in 2017 and has already doubled that year's all-time high. Even if the short-term trend does break down, the long-term trend still points upwards.

The Google Trends segment Peterson recognizes may not have much of an impact. As time goes by, using Google as a barometer of sentiment becomes less and less useful. Why? Because more and more people know exactly what Bitcoin is and what it means, so there is less need to search for information about Bitcoin.

Because people stop searching for terms like "how to send an email" doesn't mean email is suddenly dead, at some point the technology and the search for learning new information about that technology are different and there is no looking back.

By then, the technology will have gained widespread enough adoption to have long-term staying power, so will the same happen with Bitcoin now?

The original text comes from bitcoinist and was translated by Blockchain Knight. The English copyright belongs to the original author. Please contact the translator for Chinese reprint.