Thomson Reuters is to use a bitcoin sentiment gauge designed to help investors know what is going on with the market.
In a report from Reuters, a new version of MarketPsych Indices, a behavioral economics research firm, will scan more than 400 websites, many of which focus on cryptocurrencies, designed to capture market-moving sentiment and themes.
Heightened interest within the crypto market has seen an increase in the number of traders turning to the market. With December prices showing bitcoin within touching distance of $20,000 for the first time more people are keen to make a profit.
In an attempt to help investors out Thomson Reuters is using it’s bitcoin sentiment gauge to sift through online chatter. It’s hoped that this will provide investors with the knowledge to know what’s going on in the market, giving them an indication as to when they should buy.
Austin Burkett, Global Head of Quant and Feeds at Thomson Reuters, explained:
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.
Last week, it was reported that Fundstrat Global Advisors had created a new bitcoin index designed to give traders an idea as to when it’s a good time to buy the cryptocurrency.
According to Thomas Lee, the co-founder of the company, now is a good time to invest in the currency, adding:
When the bitcoin misery index is at ‘misery’ (below 27), bitcoin sees the best 12-month performance. A signal is generated about every year.
At present, the bitcoin index is reporting a score of 18.8. This is the lowest it has been since the 6th September, 2011. These announcements come at a time when the digital currency market has seen prices drop.
Last week, the U.S. Securities and Exchange Commission (SEC) announced that exchanges that offer the trading of ‘digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws’ would have to register with the SEC.
Not only that, but Japan’s Financial Services Agency (FSA) recently ordered two digital currency exchanges to cease operating for a month after finding they lacked measures in place to ensure consumer protection. The exchanges in question include Bitstation and FSHO.
At the time of publishing bitcoin is trading over $9,200, according to CoinMarketCap.
