Cryptocurrency analytics firm MarktQuant has published a statement analyzing Google Trends data for the search term “cheap crypto.”
The company notes that there is a historical correlation between increases in this search term and market peaks during previous bull runs, suggesting that increased interest from retail investors often coincides with market exhaustion, as is the case with increased searches for budget-friendly cryptocurrencies.
MarktQuant points out that while this indicator has been historically reliable, it is not perfect. The growing popularity of cryptocurrencies means that the base level of searches for “cheap crypto” has naturally increased over time, making it difficult to interpret the spikes conclusively as simply an indication of an impending market top.
Despite the increased research volume, MarktQuant remains optimistic about the early stage of the current market cycle. Based on this specific metric alone, the company concluded that a market top does not appear imminent. However, the statement noted that this data should be considered in conjunction with other market indicators for a comprehensive analysis.
*This is not investment advice.