As reported by Reuters, Thomson Reuters is set to track and analyze mentions of Bitcoin, the dominant cryptocurrency by market capitalization, across hundreds of social media and news websites. This is a new version of a Thomson Reuters Corp tool will capture online chatter around bitcoin.
Traders have long analyzed online chatter around traditional investments, and that trend continues with bitcoin, which Reuters will analyze in the tool it runs with MarketPsych Data LLC.
Austin Burkett, global head of Quant and Feeds at Thomson Reuters, 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.”
The new version of the MarketPsych Indices will find mentions of Bitcoin on more than 400 websites, in an effort to properly illustrate current sentiment in regards to the volatile cryptocurrency.
The move by Thomson Reuters comes primarily in response to the popularity of online analysis in traditional asset trading and illustrates the continued push by Bitcoin into the mainstream investment consciousness.
Cryptocurrency-focused forums and news media are still relatively new and have remained largely untapped by traditional investors until now. Explains 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.
At the time of writing, Bitcoin is trading at $9,156, after a short rebound to almost $9,900 — and many investors are currently scratching their heads while wondering which direction the dominant cryptocurrency will lead the market next.
After hitting a high of just under $20k in December, Bitcoin has gone through a long and protracted price decline, bottoming out at just under $6k in February.
Many who are bullish on Bitcoin view the current price of the first and most secure cryptocurrency as a buying opportunity, while those who are negative still claim the price of Bitcoin is too high.