We have repeatedly described how the correlation between the price of cryptocurrencies and the trend in their market value was tight.
Basically in the last few months, starting from Bitcoin and then cascading over all the less capitalized cryptocurrencies, every significant movement in the market trend (data source coinmarketcap), corresponded with a similar movement by trend and intensity of research on Google, the most widespread online search engine in the world.
This correlation led us and others to assume a direct correlation between the two numericals. With such small numbers, social media and internet had a decisive influence on the market price trend. The big financial capitals, in this case, were “beaten” by the small operators scattered around the world, able to determine the market among them.
Today, searches for the term Bitcoin on Google Trends give us this result:
What happened is decisive: we are back exactly at the levels of August 2017.
Just the moment when the mad rush and the world frenzy that allowed Bitcoin and the other cryptocurrencies to start making a small breach of ordinary citizens began. What happens today, however, is that with equal attention to the main search engine, the price has exactly doubled.
In fact, if the searches on Google are exactly those of August, the price is exactly double to what it was in the hot summer of 2017.
Today Bitcoin is worth 7,300 Dollars, while in August 2017 it did not reach 3,000.
What will happen now that the media attention on the Cryptocurrencies has again turned off, but their value has remained significantly higher than that of last summer?
We consider the thousands of online price analysis superfluous. The market is still so small and influential, that what remains decisive is the possibility that the cryptocurrencies are really spread in the everyday life of millions of people in the world. Financial values, without real diffusion, count for little. And they are a risk to too many thousands of small savers.