Google Sales Drop Partially Blamed on Crypto Winter

YEREVAN (CoinChapter.com) – Google parent company Alphabet’s revenue growth slowed down to 6%, according to the earnings call on Oct 25. Philipp Schindler, Google’s chief business officer, partially blamed the estimated growth miss on the reduced ad and search spending by crypto companies and other financial firms.

Search engine giant hit by crypto winter

In the third quarter, we did see a pullback in spending by some advertisers in certain areas of search. For example, in financial services, we saw a pullback in the insurance, loan, mortgage, and crypto subcategories

commented Schindler.

Schindler referenced the crypto winter several times during the call. However, the executive did not provide detailed statistics on the matter. Meanwhile, in mid-October, Google strengthened its ties with the crypto market by partnering with Coinbase, the largest crypto exchange in the US.

In detail, World’s largest search engine announced it will start accepting crypto payments for cloud services by 2023.

To bring this feature to customers, the company partnered with Coinbase. The latter provided its customers with machine learning-driven crypto insights by leveraging Google’s data and analytics technologies.

Admittedly, the partnership came in a bear market, and Google possibly hopes it represents a temporary glitch. However, deeper ties with crypto did not pay off for Google just yet, considering the 70% digital asset market wipeout year-to-date. So, can Bitcoin recovery remedy the situation?

Will Bitcoin recovery help Google?

Bitcoin is the largest digital asset that accounts for roughly half of the crypto market cap. Thus, BTC price recovery will likely influence the market sector and, by extension, crypto-related stocks. For example, the correlation between COIN and BTC is evident from the chart below.

However, the flagship crypto itself depends on broader market conditions. The headwinds from the Federal Reserve’s quantitative tightening policies, the failing stock market, and the global energy crisis forced investors to flee risky assets.

However, as CoinChapter reported earlier, Bitcoin might have also established a connection with safe-haven assets. If the correlation persists, BTC investors could see green candles on the charts, which would recover the crypto market.

Also read: US Banks Liquidity Squeeze Threatens To Send The Crypto Market Below $900B.

Will Google benefit as well? It seems likely that Google as a company will recover as soon as the geopolitical crisis is over and the stock market is out of its misery. The search engine giant and the crypto market might rise in tandem, as both might benefit from a ubiquitous recovery.