A recent study published by the US National Bureau of Economic Research (NBER) assumes that cryptocurrency markets are moving depending on the level of attention they receive. Alternatively to traditional financial markets.
Unlike other financial assets, cryptocurrencies otherwise react to the same set of market incentives. Instead, they interact more closely with «specific factors». They include the attention of investors and market impulse on day and weekly frequencies. The authors of the article, the economists Yukun Liu and Oleg Tsyvinsky, suggest that, contrary to public opinion, markets do not consider cryptocurrency on par with a standard assets class.
It is noteworthy that this study includes data on consumer activity in search engines, such as Google, as well as on social networks, such as Twitter. It was found that an increase in the search for keywords, such as Bitcoin, predicted a slight increase in the price of tokens in the following weeks.
According to the report, on average, the popularity of search popularity by keyword leads to an increase in the price of 2.75%. Similarly, an increase in interest in twitter reports has led to an increase in Bitcoin’s price by 2.5%. On the other hand, an increase in search by requests, following the «Theft of Bitcoins», was reflected in a slight decline in the price of Bitcoin.
Accordingly, cryptotreers may take into account the statistics of search engines and work with it as a certain indicator of the price of 2: 0.