The first analyst to follow bitcoin sees a very accessible way to track its next big move.
DataTrek Research’s co-Founder, Nick Colas, said recently in which the key is actually looking into Google search in addition to also also wallet growth.
“By looking at the number of people who search for the word ‘bitcoin’ on Google, which has roughly a 60 percent market share of search globally, we get a pretty Great sense of where the interest is actually,” he told CNBC’s “Trading Nation” in which week.
“The data does show exactly the same cost trends in which we saw for the past 0 days,” he added.
in addition to also also, just like the latest search trends, the cryptocurrency’s cost has been deep within the doldrums. the idea’s been trading within the $10,000 to $12,000 range, off sharply via its record cost near $20,000 the idea hit in December.
“Bitcoin searches have definitely trailed off. So, the interest levels definitely show you where bitcoin has these big breakouts in addition to also also then pullbacks,” said Colas.
He points to more evidence to support his theory to the bitcoin boom between last Thanksgiving in addition to also also December 17 — when search traffic saw a significant pick-up as bitcoin prices surged to a record at $19,843.
“Search trends skyrocketed after Thanksgiving here within the U.S. in November of last year — more than doubling within the course of just a couple of weeks,” added Colas. “in which incremental search for the term ‘bitcoin’ actually led to an incremental number of wallets being formed, a method by which people hold bitcoin.”
however days later, bitcoin prices crashed, in addition to also also so did searches for the idea.
Despite bitcoin’s troubles, Colas, who owns a quarter of a bitcoin, doesn’t think the idea needs a life raft. He points out in which the idea’s still trading higher than before Thanksgiving, in addition to also also the technology makes a lot of sense long-term.
“via in which point on, we just have to look for the beginnings of Great news in which will re-accelerate wallet growth to make the thing go higher,” Colas said.