Thomson Reuters to Convert Social Media Opinion into Tradable Data
What is the difference between Bitcoin in late 2017 and early 2018?
Well, apart from “about $10,000” the big difference is market sentiment. Though there have been concerns about regulator crackdowns, nothing very severe has occurred, particularly compared to China banning cryptocurrency exchanges last year, which did little to stop Bitcoin’s explosion. What has changed is the way that people are feeling about the market. Without taking that into account it is impossible to predict price movements.
Now news agency Thomson Reuters has announced that it is going to try and capture that market sentiment and sell it to professional traders. In partnership with MarketPsych Data LLC they have just launched the newest version of MarketPsych Indices. The platform already has sentiment indices for other asset classes and now, for the first time, will contain Bitcoin too,
Over 400 news and social media sites, particularly those with a cryptocurrency focus, have been added to the feed. The sites are scanned, analysed, and their content converted into a data feed, effectively a barometer of the market’s mood. Traders will then be able to subscribe to this feed, just as they can subscribe to other data like price and volume information.
Austin Burkett, Global Head of Quant and Feeds at Thomson Reuters, flagged the increasing importance of the online conversation in precipitating trading behaviour. “News and social media are driving the investment and risk management process more than ever”, he said, particularly with the “continuing rise of passive and quant-driven trading”.
This version of MarketPsych Indices has been expanded to better reflect the diversity of the current trading environment. In addition to Bitcoin, sentiment indices have been added for “national fixed income securities and stock market indexes for the top 61 global economies and the Eurozone”.
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