Determination of relationship between google bitcoin searches and bitcoin price

Abstract

The purpose of the study, it was tried to be determined whether the popularity of Bitcoin affects Bitcoin prices or whether Bitcoin prices increase the popularity of this product. In this context, it is aimed to examine causility relationship between the price trend of Bitcoin in US Dollars and Google Trends "Bitcoin" index data. Methodology-In the study, the causal relationship between Bitcoin prices and Google Trends Data was examined with the Toda -Yamamoto (1995) test based on the VAR model. Findings-As a result of the calculations and analysis, it was concluded that there is a one-way causal relationship between Bitcoin Prices and Google Searches, and the direction of this relationship is determined from Bitcoin prices to Google searches. Conclusion-These results show that from these two series, which have a high positive correlation and causality relationship, the fluctua tion in Bitcoin price increased the interest in Bitcoin. In this context, it is possible to say that the price changes in Bitcoin increase the popularity of Bitcoin.