How about treating the search hits as a first derivative of the price? And maybe superimpose that over the inflation.
Sounds interesting. Can you give an example of how to do this?
sounds like a pretty solid theory to me. I would probably use the integral of search hits over time instead of first derivative, (showing the accumulation of new users), given that 1000 hits now will probably have more impact on price than 1000 hits a few years from now (assuming bitcoin keeps growing). To account for inflation, maybe its easiest to calculate what effect the news hits have on market cap instead of price (from which price can easily be calculated by dividing by nr of coins in circulation).
Maybe also add a component which accounts for some people becoming disillusioned over time and selling (no idea how to implement that yet).
By the way 123, how did you get this data?
Might be interesting to do pearson correlation with price (or market cap) as well: http://www.alcula.com/calculators/statistics/correlation-coefficient/
