Thomson Reuters to track data on top cryptocurrencies
Thomson Reuters has expanded its sentiment data offerings to track the top 100 cryptocurrencies through its partnership with quantitative behavioral science firm MarketPsych Data LLC, which uses machine learning and natural language processing to measure a breadth of emotional and topical items across news and social media sites.
The MarketPsych Indices (TRMI) package, first launched in 2012, analyses data in real time across 2,000 top global news sites and 800 global financial social media sites.
It converts the volume and variety of professional news and social media into manageable information flows that can help drive investing decisions and risk management across asset classes.
The data is designed to be seamlessly incorporated into both quantitative and qualitative analysis to help enable investment and other professionals to quickly discern patterns affecting their respective businesses.
According to a Thomson Reuters survey released in April 2018, about 20% of financial firms indicated they are considering trading cryptocurrency over the next 3-12 months. However, providing trading insight to 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.
Following the launch of bitcoin sentiment data in March 2018, Thomson Reuters has now created a dedicated TRMI Cryptocurrency Sentiment package (TRMI 3.1).
Thomson Reuters managing director and global head of investing and advisory Pradeep Menon said: "Our 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.
"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."