Search data for crypto market direction

Google searches for 'crypto' and 'NFTs' plummeted

Investors struggle to call the market bottom. When is it safe to buy again?

This is a huge question as The Merge stimulates an Ethereum rise and hopes for a bull run. Many investors are looking to Google Trends data for indicators of this transition.

Yahoo!

Google searches are a good indicator of investor and consumer mood. The Defiant discovered that "crypto" web searches fell 73% in 2022 and "NFTs" fell 86%. "Ethereum" searches are down 57%.

Not surprising findings. Due to the $60B Terra ecosystem collapse in May and the accompanying aftermath, investors are avoiding crypto.

Last time sentiment was this bad, in December 2020, crypto's greatest bull run was around the corner. Between March 2020 and January 2021, crypto market capitalisation multiplied 17 times, reaching $2.2 trillion.

Google search data: contrarian indicator? Does sour sentiment signal a turn?

As if!

Economic factors that were supposed to leave crypto alone are affecting the market as definitely as stocks or bonds. Western nations flooded their economies with funds in March 2020 to combat the Covid-19 pandemic and lockdowns. All this money swimming about led to a stock and digital asset bull market as investors bet big on risk.

Inflation skyrockets

As investors reduce risk due to this year's economic developments, equities and crypto suffer. Pandemic financing has triggered soaring inflation in the U.S. and Europe, prompting central banks to boost interest rates. Increasing capital costs slows economic development and stock prices in the short term.

The Fed, Bank of England, and ECB are pinching crypto, which was meant to be immune to government machinations.

So, Google Trends data. A bear market is characterized by waning interest in cryptocurrencies.

12 months of Google Trends and bitcoin pricing. Google Trends/Defiant Terminal
Instability in crypto's pricing has encouraged searches on its "death." Many crypto large players crumbled in May and June, and the media reported on unpleasant behavior on many crypto platforms.

Google trend: "Crypto is dead." Trends.google.com

Cryptography isn't dead. That's an emotional reaction to market volatility. Decentralized finance is seeing a summer rally. The Defiant Terminal says Ethereum has risen 38% in 30 days. Polkadot, Polygon, and Avalanche also saw double-digit growth.

The Merge, Ethereum's upgrade to Proof-of-Stake, is driving ETH buying and recalibrating the DeFi narrative. Investors enjoy a good narrative.

Google Search statistics for "The Merge" may indicate sentiment in the coming weeks.