Analysis of the Relationship Between Google Search Volume and Bitcoin Price Change Based on Python

The price of bitcoin has changed significantly in recent years. At the same time, there are abundant media attention and news coverage of Bitcoin. This research applied Python to crawl Bitcoin daily exchange data and Google search volume index (SVI) from Coinmarketcap.com and Trends.Google.com and to conduct data cleaning to make the collected search volume data unified and comparable in a time series. This paper focuses on the association between SVI and changes in Bitcoin price. Specifically, this study looks into correlations between SVI, Bitcoin returns, and price volatilities by conducting a vector autoregression model. The results show that SVI has an evidently positive influence on both the return and volatility of Bitcoin, which means SVI could be used as an effective predictor in forecasting Bitcoin earnings. This paper enriches research on the impact of the Bitcoin search volume index on prices, which indicates that SVI is a meaningful evaluation index to invest in Bitcoin.