According to various speculations, Bitcoin’s recent price pump wouldn’t have been possible without the involvement of China, a claim popular trader Alex Krüger decided to investigate using Baidu as a benchmark to ascertain its credibility.
What Determines The Price Of Bitcoin?
A lot of people have been able to stay afloat in the crypto market by using Google trends as their informant. These set of people may be categorized as those who for one reason or another have zero time or patience to study Bitcoin price charts all day. In their situation, Google trends always comes in handy.
A lot of research have been conducted by scientists to find the link, if any, between search interest and the price of digital assets. Unfortunately, the researchers have been unable to prove the existence of such a link.
But the truth is that there is a connection between search interest and Google trends, it may not be scientific but it sure exist.
China Makes Her Stand With Baidu
Google’s reach is everywhere, undoubtedly, but one country seems immune to its effect and that’s China. In fact, China has gone a step further to build a Google version of hers, further giving Google the stop sign.
Recent happenings in the world, especially between the super powers for example the US/China trade war, have turned the attention of the Chinese back to Bitcoin. Google trends cannot show this new development, understandably, that’s why a wider scope is needed and Baidu provides just that. Alex Krüger has taken the initiative to explore this newer option.
Krüger observed that all Bitcoin Searches on Baidu were not really different from what the rest of world searched for on Google. What this means is that peaks were observed either on the same dates or on similar dates when there was a price breakout or after such event occurred.
Search interest declined significantly both in China and the rest of the world from mid-May, even in the midst of the bubbling price of Bitcoin.
On Baidu, search interest for ‘trade war’ appeared to be linked with tweets from Donald on May 5/6, while Bitcoin interest showed no improvement, perhaps because people had a topic they considered more engaging at that point.
Something did occur on May 14 and that was a rise in searches for ‘trade war’ and ‘Bitcoin’ when a call was made by Chinese media against the USA in what they termed a “People’s War.” On the said date, the two interests surged before dropping again with crude similarity.