Wołk ( 2019) also supported this argument, explaining further that the cryptocurrency price depends heavily on social media sentiments and web search analytics tools such as Google Trends.Ĭurrently, cryptocurrency holders worldwide are in a panic as the Bitcoin prices are fluctuating wildly. There is a correlation between Bitcoin’s price and changes in search query volumes of people (Karalevicius et al., 2018). Sentiments-investors’ thoughts, feelings, and moods regarding an asset-influence the BTC market prices.

However, the price of Bitcoin is influenced by market sentiments (Eom et al., 2019). Many investors are attracted to Bitcoin due to its high liquidity, low transaction costs, and easy transaction across the internet (Zheng et al., 2019). A vital characteristic of the cryptocurrency market is that currency prices fluctuate based on people’s perceptions and opinions. Twelve years after its inception in 2008 by the pseudonymous coder Satoshi Nakamoto, Bitcoin price has been skyrocketing to unprecedented heights. We have also observed an artificial investment intention in the form of digital nudges playing the field of the Bitcoin market to boost investment.īitcoin is exhibiting tremendous growth in value and popularity. Our research shows a crossmatch between quantitative trends on Bitcoin market prices and qualitative matrix of sentiments. We also used search data from Google Trends for providing further insights. For strengthening the findings of qualitative analysis, we used quantitative data of the BTC market. For analysing market sentiments, the posts and sentiments from 2016 to 2021 of an internet forum “Bitcointalk” were used. Both the qualitative and quantitative data of time periods 2016–2021 were examined to find whether the Bitcoin market prices are influenced by market sentiments. Are the Bitcoin prices influenced only by market sentiments or do any factors influence them? In this paper, we applied a triangulation approach mixed-methods research was used in which a qualitative study was complemented by a quantitative method. The Bitcoin market witnessed a crash during the second quarter of 2021 that was purely guided by the investors’ sentiments. Bitcoin (BTC) prices are fluctuating continuously to the extremes.

Cryptocurrency google trends