Reuters has reported that its parent company Thomson Reuters is planning to track Bitcoin-related trends and news to provide cryptocurrency adopters with vital trading information. The company will use its own tool, MarketPsych Indices, to examine more than 400 websites “to capture market-moving sentiment and themes.”
Reuters staff reported the news today, “Digging through market chatter and analyzing online sentiment has long proven popular among traders of traditional asset classes.” Cryptocurrencies have not only created an entire ecosystem but also paved the way for websites, forums and social media accounts to become the leaders in trading advice, ICO reviews and community services.
For instance, bitcointalk.org is a forum dedicated to people who are already investing in Bitcoins or who want to become a part of the Bitcoin community. Mining, economic, and trading discussions take place where users contribute with their opinions. Even ICOs submit proper posts to allows users to interact with the companies. Reddit also entertains cryptocurrency users – many people voice their thoughts on buying, selling, trading or using Bitcoin for philanthropic activities on the social media platform. Cryptocurrency websites as well as the Twitter accounts of cryptocurrency founders convey information that can change the value of the digital currency within a few hours.
Global Head of Quant and Feeds of Thomson Reuters, Austin Burkett, said, “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’ initiative to combine these headlines and present a solution for an average trader to buy, sell or hodl his / her Bitcoins at the right time will definitely be received positively.
He also spoke with Coindesk regarding the usage of the “Bitcoin sentiment gauge”, “Our customers can use it to generate alpha. They can drive positive investment returns. They can use it to better balance the risk in their portfolios.”