The Leading Indicator Or Actually Everyone Gets It Wrong?

With Bitcoin surging over the past couple of weeks, it is no suprise that the Google search trends for Bitcoin and cryptocurrency are going through the roof. However, many people believe that the search trends are a leading indicator, meaning that the Google search trends will tend to increase before price increases. However, most people may be getting this the wrong way around.

Leading indicators tend to indicate that something is about to happen as opposed to lagging indicators which indicate that something has already happened. In traditional economic terms, the stock market is a leading indicator to the overall health of the economy. If the stock market starts to fall, this rings bells across the finance world that a recession may be on the way. Conversely, in traditional finance terms, unemployment and real GDP are lagging indicators, meaning they only fall after the economy has started to crumble.

So the real question should be, do people search for Bitcoin because they…

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