Welcome to the the bitcoin attention economy
The correlation between bitcoin searches, price, and trading volume is a fascinating dance of public interest and market dynamics.
When Bitcoin’s price spikes, it grabs headlines, igniting public curiosity. This curiosity translates into increased Google searches as more people try to understand what bitcoin is and why it’s soaring. It’s like when a celebrity does something outrageous – suddenly, everyone’s Googling them. These searches don’t just reflect passive curiosity; they often translate into action, as seen in the corresponding increase in bitcoin’s trading volume.
High search volumes can precede price increases, as growing interest may lead to more people buying Bitcoin, increasing its price. It’s a self-fulfilling prophecy – the more people are interested in Bitcoin, the more they invest in it, and its value increases. A virtuous cycle, one might call it.
This correlation, though, isn’t an ironclad rule. Various factors influence Bitcoin’s price, such as regulatory news, technological advancements, and broader economic trends. So, while Google search trends can offer insights, they’re just one piece of a much larger, more complex puzzle. While we don’t provide ANY financial advice, we let you decide by looking at those lines in the graph and decide if it’s worth opening google trends every morning before your morning coffee.
Bitcoin interest by country 2023
El Salvador leads the pack and the top score, embracing Bitcoin like it’s their national sport, not only national currency. The country has made a big gamble against the world and is now reaping the rewards by focusing the country’s (mental and volcano) energy on one place.
Nigeria follows with a strong 84, showcasing its growing appetite for digital money. Brazil and the Netherlands, both at 45, show a European and South American zest for crypto, while Switzerland and Austria, with 43 each, indicate a keen interest in bitcoin amid their banking legacies. Germany, at 33, shows a solid, albeit more cautious, engagement with bitcoin.
Shift in Bitcoin Search Trends Since 2021
There’s been a seismic shift in bitcoin’s global appeal. El Salvador remains the undisputed leader, solidifying its status as bitcoin country. Nigeria saw a dramatic 3x+ increase, from 25 to 84, indicating a burgeoning interest in cryptocurrency. Brazil jumped from a modest 10 score to a more robust 45, signaling a growing crypto curiosity and the Netherlands maintained its strong presence, moving from 26 to 45.
European countries like Switzerland, Austria, and Germany showed increased interest, indicating a growing acceptance of bitcoin in the traditional financial heartlands.
Bitcoin interest by city
Brazil’s bitcoin boom
The data reveals a fascinating trend at a city level, though. Cities in Brazil are leading the pack in searches for bitcoin. With over 90 towns on the top list, Brazil is significantly ahead of the following country, the Netherlands, which has 17 cities on the list in total. The top 10 cities, all from Brazil, show exceptionally high scores. São Gabriel tops the list with a score of 100, followed closely by Itaituba and Goianápolis, scoring 96.
Brazilians are motivated to invest in cryptocurrencies as a hedge against inflation or currency devaluation rather than buying U.S. dollars. This is partly because when they buy foreign currencies, they must pay a financial operations tax (known as IOF in Portuguese), which varies from 1.1% to 6.38%. However, this tax doesn’t apply to stablecoins, making them a more attractive option.
A changing landscape of bitcoin interest in the past 5 years
Comparing the data from the past 5 years with the data from the last 12 months, there are some noticeable shifts in the cities leading in Google Trends searches for Bitcoin.
Firstly, the interest in Bitcoin has seen a decrease in European cities. Cities like Saint Gallen, Graz, Winterthur, and Amstelveen, which were prominent in the 5-year data, have seen a significant drop in 2023. Bitcoin hubs like Lugano or Berlin seem to be occupied more with the war in Ukraine than the price of bitcoin.
Cities like Lagos, Graz, The Hague, Cologne and Cracow that were the most interested in bitcoin the previous cycle are nowhere to be found in 2023 ranking.
Alright, so bitcoin is currently lounging at $43,000, roughly two-thirds of its all time high, but attracting about as much attention as a rerun of an old sitcom. Meanwhile, everyone’s too busy fretting over the latest weather forecasts, political dramas, and their shrinking wallets (thank you inflation). But what’s going to happen when bitcoin starts hitting those record highs again? Do you think we are going go see a monster bull run in 2024? Let me know in the comments!