Bitcoin Sentiment to be Tracked by Thompson Reuters
Market sentiment plays a huge part in the crypto industry. Prices can pump or slump on the whim of a shill, or a flurry of mainstream media FUD. This is especially relevant for altcoins, many of which did exactly that leading up to the big spending spree of late December. In order to help investors find an edge in the high octane world of crypto trading Thompson Reuters announced today that it will track and analyze chatter about Bitcoin on hundreds of news and social media websites.
Psyching the Markets
According to a report today the company will be using data from behavioral economics research firm MarketPsych Data LLC. This will be employed to create a new version of its MarketPsych indices to paint a clearer picture of market sentiment.
The company will scan over 400 websites relating to cryptocurrencies to capture market-moving moods and themes according to Reuters. The method has proved successful with traders for traditional asset classes such as forex or commodities. A burgeoning online industry covering crypto news has emerged over the past year as interest in Bitcoin and altcoins has skyrocketed along with their prices.
Much of it is on social media such as Twitter and Reddit and a number of analysts have linked this activity, along with the number of Google searches for Bitcoin or an altcoin, with its price action. According to Austin Burkett, Global Head of Quant and Feeds, at Thomson Reuters;
“News and social media are driving the investment and risk management process more than ever with the continuing rise of passive and quant-driven trading,”
Bank and hedge fund traders currently use tools such as Thompson Reuters’ Eikon platform which tracks the prices of a number of cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash. Captivating the mood swings of volatile crypto markets will be another essential service and tool the company can offer to its clients.
Bitcoin has recovered slightly from the weekend’s low of $8,500 to trade up 12% at just under $10,000 at the time of writing. It is also up the same percentage from this time last month and is looking at solid gains over the coming months.