Friday, January 27, 2023

Thomson Reuters to Launch Bitcoin Sentiment Tracker. Will It Be Respected?

Thomson Reuters to Launch Bitcoin Sentiment Tracker. Will It Be Respected?

Thomson Reuters Corporation’s TRMI market sentiment data feed will now include bitcoin sentiment tracking. The TRMI service tracks sentiment over a range of asset classes. Its latest release (3.0) is the first to gauge cryptocurrency sentiment. Will the bitcoin community care for now?

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Media Giant to Scan 400 Websites to Track Bitcoin Sentiment

According to the company’s press release, the mass media giant has launched a bitcoin sentiment indicator to assist crypto asset traders predict future price fluctuations.

The press release states that the new MarketPsych Indices, which it operates in partnership with behavioral research firm MarketPsych Data LLC, will track and analyze market sentiment on over 400 news and social media sites, many of which are crypto-related.

As investors continue to seek an information edge in the markets, more sophisticated data services backed by advanced analytics and technology are becoming increasingly commonplace. These sophisticated indicators are demanded by investors seeking to maximize their returns.

Social Media and News Sites Suitable Indicators for Bitcoin Sentiment

Austin Burkett, the 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. As the financial marketplace rises in complexity, so too does the need to provide our clients with not only the relevant data, but the tools to help them manage and analyze that data.”

The Canada-based company currently offers pricing services for bitcoin, ethereum, ripple, litecoin, and — as of December last year — bitcoin cash through its Eikon platform. Notably, the Eikon platform is used globally by many financial institutions and hedge fund traders.

Asking the ‘Who Cares?’ Question

Some may consider this one more step toward mainstream adoption of crypto assets, or at the very least, an acknowledgement they warrant being considered a valid investment vehicle.

Others may wonder if cryptocurrency communities really care how valid institutional investors regard crypto assets. The Weiss Ratings have been generally bashed, for one.

At press time, according to CoinMarketCap, the 24-hour volume of bitcoin trading was almost $7 billion USD. Daily trading volumes on the London Stock Exchange average around $6.7 billion in comparison.

bitcoin sentiment

To that end, digital assets are going to be increasingly observed, measured, and analyzed by institutional market players going forward, that much is clear. But, with bitcoin’s trading volume as it stands, it’s clearly defied their understanding hitherto.

A sentiment tracker presumably won’t change that dynamic for the foreseeable future.

Does Thomson Reuters’ inclusion of bitcoin sentiment in its TRMI data feed suggest the mainstream investment community is warming to cryptocurrencies? Let us know your views below.

Images via Pxhere, CoinMarketCap 

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