coindesk.com / October 2, 2015 at 10:15 BST
Google search data can predict the price of bitcoin, new research has found.
Academics from the University of Cagliari, Italy, compared USD trading volume with data from Google Trends in the 12 months leading up to July 2015.
The results, detailed in their new paper, indicated that search volumes for the keyword ‘bitcoin’ correlated with – and sometimes predicted – the currency’s market volumes.
Using a Pearson correlation, which shows the relationship between two variables on a scale of -1 (lowest) to +1 (highest), Martina Matta, Ilaria Lunesu and Michele Marchesi found a positive correlation equal to 0.6. This means trading volumes “[follow] the same direction pace of queries volumes,” they said.