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<p>Bitcoin and Ethereum are the two largest cryptocurrencies in the world by market capitalization and trading volume and the most popular despite high price fluctuations. This paper analyzes the relationship between Bitcoin and Ethereum metrics and the internet search interest on cryptocurrencies. As the literature shows, Google searches signal investor attention and Google Trends has proven useful for nowcasting economic and financial indicators. We aim to find the impact of Google Trends on Bitcoin and Ethereum prices, trading volumes and market capitalization since 2015 and discuss the potential correlations and patterns that may exist between these metrics and Google search interest. Through correlation and time-series analysis, we provide insights into the dynamics of this relationship and its implications for understanding cryptocurrency market behavior. The interest in cryptocurrencies tracked by Google Trends is a good indicator of measuring the social interest in the cryptocurrency market that drives a price movement. On the other hand, the price fluctuations of Bitcoin and Ethereum generate media and social attention and increase the interest in these cryptocurrencies. We also observe a positive effect of Google Trends values on trading volumes. The findings could help investors to understand the cryptocurrencies dynamics and build their trading strategies and could be of special interest to policymakers.</p>
</abstract>

Bitcoin and Ethereum are the two largest cryptocurrencies in the world by market capitalization and trading volume and the most popular despite high price fluctuations. This paper analyzes the relationship between Bitcoin and Ethereum metrics and the internet search interest on cryptocurrencies. As the literature shows, Google searches signal investor attention and Google Trends has proven useful for nowcasting economic and financial indicators. We aim to find the impact of Google Trends on Bitcoin and Ethereum prices, trading volumes and market capitalization since 2015 and discuss the potential correlations and patterns that may exist between these metrics and Google search interest. Through correlation and time-series analysis, we provide insights into the dynamics of this relationship and its implications for understanding cryptocurrency market behavior. The interest in cryptocurrencies tracked by Google Trends is a good indicator of measuring the social interest in the cryptocurrency market that drives a price movement. On the other hand, the price fluctuations of Bitcoin and Ethereum generate media and social attention and increase the interest in these cryptocurrencies. We also observe a positive effect of Google Trends values on trading volumes. The findings could help investors to understand the cryptocurrencies dynamics and build their trading strategies and could be of special interest to policymakers.

Exploring the Relationship Between Google Trends and Cryptocurrency Metrics

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Exploring the Relationship Between Google Trends and Cryptocurrency Metrics"}

Bitcoin and Ethereum are the two largest cryptocurrencies in the world by market capitalization and trading volume and the most popular despite high price...

Exploring the Relationship Between Google Trends and Cryptocurrency Metrics

Pubblicato online: 21 mag 2024

Pagine: 368 - 379

DOI: https://doi.org/10.2478/sbe-2024-0020

Parole chiave
Bitcoin, Ethereum, price, trading volume, Google searches

© 2024 Ramona Orăştean et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Exploring the Relationship Between Google Trends and Cryptocurrency Metrics

Pubblicato online: 21 mag 2024

Pagine: 368 - 379

DOI: https://doi.org/10.2478/sbe-2024-0020

Parole chiaveBitcoin, Ethereum, price, trading volume, Google searches

© 2024 Ramona Orăştean et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Parole chiave
Bitcoin, Ethereum, price, trading volume, Google searches