Media giant unveils a tool which will gauge the market sentiment on Bitcoin by analyzing more than 400 websites.
Mass media and information firm Thomson Reuters is set to help cryptocurrency investors make all the right moves by launching a tool which will track and analyze news and social media websites to gauge the online chatter and sentiments on Bitcoin.
As per an announcement, the media company has unveiled a new version (version 3.0) of a tool called MarketPsych Indices, which is run jointly by Thomson Reuters and MarketPsych Data LLC. This tool will use AI to scan more than 400 websites, to gauge online themes and sentiments regarding Bitcoin.
This sentiment data feed is bound to prove invaluable for investors seeking to identify the right opportunities to buy and sell in the volatile and highly unpredictable crypto market, allowing them to maximize returns and manage their portfolios more efficiently.
According to Austin Burkett, Thomson Reuters’ Global Head of Quant and Feeds:
“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. As the financial marketplace rises in complexity, so too does the need to provide our clients with not only the relevant data, but the tools to help them manage and analyze that data. MarketPsych 3.0 helps deliver another layer of analysis and value-add in the investing process.”
Despite the high level of risk involved, the chances of huge returns have sent countless investors flocking to the crypto market – consequently, websites and social media are rife with trading tips, and news on the latest developments in the crypto space.
While traditional markets have also relied upon analysis of market sentiment and chatter, the crypto market has displayed particularly sharp, abrupt, and immediate fluctuations in response to developments, and can swing drastically within minutes, making an online sentiment tracking tool particularly valuable.
Within the past few months, for example, a report by Bloomberg reveals that the Google searches for “Bitcoin” declined as Bitcoin’s price dropped. In December last year, Bitcoin peaked at an all-time high of around $20,000, before a combination of factors (including increased regulatory pressure from governments and financial authorities) sent it into a tailspin from which it has yet to recover.
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