Table of Contents
Main conclusions
Interest in cryptocurrencies drops in the UK this year, which is an 82% drop from last year On the other hand, 30% of Brits have bought or know someone who has bought cryptocurrencies This number continues to rise steadily – this is the highest since the record began in 2019 The correlation between Bitcoin price and Google’s search interest in cryptocurrencies is extremely high at 0.72 (1 denotes a perfect correlation, 0 denotes no correlation) Data suggests that interest will decline until positive Bitcoin price action returns, but general adoption is rising anyway Bear markets crush prices, we all know that. But have falling returns also stifled interest in cryptocurrencies? We looked at interest in cryptocurrencies in the UK to see if we could discover any patterns.
Interest in cryptocurrencies at the lowest level of the year
As the cryptocurrency collapsed last year from an all-time high of nearly $69,000 to where it is now below $20,000, interest has followed suit. In fact, looking at Google search trends, interest in the UK continues to drop, reaching the lowest since 2020. Search volume, as shown in the chart below, is down 82% from an all-time high in last november. Adding to the concern is a tapering off, plus some spikes – recent figures suggest this trend could continue to decline.
Britons who own cryptocurrencies are on the rise
On a more positive note, the number of Brits who own cryptocurrencies or who know someone who owns cryptocurrencies is on the rise, reaching 30%. This reflects the long-term trend of cryptocurrency adoption and moves more into mainstream consciousness. It could also be the result of the crash being so severe that it generated a lot of headlines, with more people being aware of the people around them who have bought cryptocurrencies (and are therefore likely to suffer huge losses).
British crypto interest is highly correlated to Bitcoin price
This brings up the obvious question – how correlated is the price of Bitcoin with the general level of interest in cryptocurrencies? The answer is… very correlated. In fact, mathematically speaking, the correlation between the two variables reaches 0.72 in the last year, which considering 1 a “100%” perfect correlation, which is quite remarkable. I plotted Bitcoin price against Google search volume in the chart below, which shows this strong correlation visually.
final thoughts
In conclusion, the final graph shows – if it weren’t obvious – why interest in cryptocurrencies has plummeted this year. Bitcoin price is down 72% from last November, with interest in cryptocurrencies down 82% according to Google. It’s not a coincidence – everyone loves a bull market, and once the easy money stops being made, those who are in it for speculation disappear. On the other hand, this data shows that cryptocurrency ownership and general awareness that remains on the rise is testament to the fact that despite the horrendous price action and recent drop in interest, cryptocurrency continues to move further into the mainstream. .
