Forecasting Cryptocurrency Returns Using Search Engines

Cryptocurrency has been one of the most rapidly growing markets in recent years, with a growing number of investors and traders looking to capitalize on the potential profits available. In this context, understanding the factors that drive cryptocurrency prices and trading volumes is essential for successful investment decisions. One such factor is the level of interest in cryptocurrency as indicated by search engine data.

This article focuses on using search engine data as a tool for forecasting cryptocurrency returns and volume. By analyzing the volume of search queries related to cryptocurrency on search engines such as Google, the authors aim to gain insight into the level of interest in cryptocurrency and how it relates to price movements.

The authors use various machine learning techniques, including linear regression and time-series analysis, to model the relationship between search engine data and cryptocurrency returns and volume. They find that search engine data is a significant predictor of cryptocurrency returns and volume, suggesting that it can be used to help forecast future price movements.

The authors also examine the relationship between search engine data and various other factors that are commonly considered to impact cryptocurrency prices, such as news articles, market volatility, and market sentiment. They find that the relationship between search engine data and cryptocurrency prices is relatively stable over time, indicating that it may be a useful tool for long-term investment decisions.

Overall, this article highlights the potential of using search engine data as a tool for forecasting cryptocurrency prices and volume. The results suggest that search engine data may provide valuable insights into market sentiment and demand, and could be a useful tool for cryptocurrency traders and investors looking to make informed investment decisions.

11-02-2023