This week in bitcoin: How Google and Twitter move the market for bitcoin

Gigaom

This week’s bitcoin review takes a look at a new research paper that examines the relationship between social media interactions and the bitcoin market.

More searches does not mean a higher price

Anyone who has followed bitcoin over the last three years knows that its price is an ad nauseum repeat of price spikes followed by mini crashes. Some of them have been triggered by external stimuli, like MtGox being hacked in 2011 before it ultimately met its demise this past March. The cycle — more like a roller coaster — of bitcoin price movements is becoming an interesting research topic for academics. However, how much of the price fluctuation has to do with the hype around the cryptocurrency?

Researchers at ETH Zurich, a university in Switzerland, decided to study how social information online affected the price in their paper “The digital traces of bubbles: feedback cycles between socio-economic signals…

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