Thomson Reuters launches cryptocurrency sentiment index
Thomson Reuters said on Wednesday it had expanded its sentiment data offerings to cover investor behaviour in the cryptocurrency markets.
Through its partnership with MarketPsych Data, the provider of quantitative market behavioural data, the new Thomson Reuters MarketPsych Indices (TRMI) will track sentiment in the top 100 cryptocurrencies using machine learning and other techniques to measure a broad range of market behaviour.
Thomson Reuters said that providing trading insight into the cryptocurrency market is unique as online communications and information flow are significant drivers of cryptocurrency values, in comparison to traditional financial services assets.
“Sentiment analysis of this market therefore often requires understanding the top cryptocurrencies at any given time, where individuals get their information, which digital platforms are used for communication, and how specific language or terms used may signify future trends,” the company said.
The company said its new TRMI Cryptocurrency Sentiment package monitors around 2,000 global news and 800 social media sites in real time, helping identify certain trading themes and models to enable investors to respond with relevant trading strategies.
Survey predicts growth
Reuters’ new offering coincides with a survey conducted by the company and released in April that showed 20% of financial firms said they were considering trading cryptocurrencies in the next 3-12 months.
“The Thomson Reuters cryptocurrency survey revealed a shift in the market, with cryptocurrencies gaining some mainstream acceptance and financial institutions looking to start trading them over the coming months,” said Pradeep Menon, Managing Director, Global Head of Investing and Advisory, at Thomson Reuters.
“Adding a cryptocurrency-focused sentiment feed to our suite of cross-asset solutions has therefore enabled us to provide our customers with invaluable insights that may help them make strategic investment decisions.”