CCN talked today about how Google Trends searches correlate with mood in the cryptocurrency market, and it's no surprise that the number of requests for bitcoins and related terms has declined along with the price.
A good example to start with is simply the number of Bitcoin requests. Google
Below is a price chart for about the same period. The similarity is obvious.
Now that correlation isn't surprising, here are some of Google's other cryptocurrency trends. For example, here is the result of the queries "bitcoin is dead":
Another query in the Google search bar that does not match the price trend is “BTC ETF”, which makes sense since it is a rather hot topic today:
Perhaps a good indicator of investor sentiment would be to compare the queries "HODL" and "Rekt". It looks like this as follows ("HODL" - blue, "Rekt" - red):
None of these results are very shocking, as public opinion always deteriorates with falling prices. However, these graphs show collective psychology. Interest will undoubtedly arise again when the next rally begins. But when?
This question haunts investors all over the world. Tom Lee, head of research at Fundstrat Global Advisors, spoke on CNBC's "Fast Money" program and voiced some thoughts on the matter.
At the end of the broadcast, he drew the attention of the audience to the “Misery” index, which evaluates the general mood of crypto traders on a scale from zero to one hundred. At the moment, it shows a high level of negativity - 36/100. To some extent, Lee justified this level with the decisions of the SEC and the steps of the Chinese government towards bans and restrictions on the cryptocurrency market.
However, as the analyst constantly pointed out, this index can be viewed as an indicator that plays against the trend, and a low price may well turn out to be a threshold for a short-term or long-term rally of Bitcoin.