Thomson Reuters announces the new tool for investors
Thomson Reuters has announced the introduction of new tracking tools for investors.
These new tools have been designed to gather data on the public’s sentiment towards cryptocurrencies.
Market sentiment plays a massive role in cryptocurrency trading.
Positive or negative news in the mainstream media can cause a considerable pump or slump effect on prices.
When values of Bitcoin plummet, there’s usually a direct correlation to FUD (Fear, Uncertainty, and Doubt) being whipped up in the press.
On the other side of the coin, a significant amount of positive press for cryptos was attributed to the substantial spending spree of late December.
Thomson Reuters announced today that it plans on utilizing these sentiments to help investors find an edge in crypto trading.
The Canadian mass media company says it would track and analyze chatter about Bitcoin on social media and hundreds of news websites
Putting out the feelers
Thomson Reuters revealed it would be using data from behavioral economics research firm, MarketPsych Data LLC, according to reports.
The intention is to create a new version of the MarketPsych data to paint a clearer picture of market sentiment for investors.
To capture the market-shifting public moods, the company will scan over 400 cryptocurrency-related websites.
A similar method is already used for traditional assets classes such as commodities or forex, proving successful with traders.
As Bitcoin and other crypto prices have risen in the last year, interest in these new digital assets has also skyrocketed.
A whole new industry of cryptocurrency news has since flourished from this rising intrigue.
Much of the online activity related to crypto has blossomed on social media sites, most notably on Twitter and Reddit.
According to the Global Head of Quant and Feeds at Thomson Reuters, Austin Burkett, the increase in social chatter along with Google searches for Bitcoin and altcoins ties in with price rises or slumps, saying:
“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,”
Thomson Reuters’ Eikon platform currently provides bank and hedge fund traders data on cryptocurrency prices.
This tool tracks the prices of the leading cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.
Adding additional information about public feeling towards the crypto market will provide an essential service to the company’s clients.
Bitcoin recovered slightly from the weekend’s low of $8,500 to trading close to $10,000 today.
At the time of press, it has pulled back slightly and is currently at $9,221, according to the Coin Thud live price charts.