Follow the internet’s gut: Reuters launches Bitcoin sentiment data feed
Neither social listening nor asset sentiment pricing are new so news that Thomson Reuters’ plan to launch a Bitcoin sentiment data feed seems surprising – only in that it’s a surprise it hasn’t happened before.
The price of cryptocurrencies around the world depend on lots of things, including technology, security and regulation. But many investors base their digital buy-ins based on public opinion, and now Thompson Reuters have introduced a tool to judge just that for Bitcoin buyers and sellers.
The Bitcoin sentiment data feed will give potential and current investors a chance to see what the internet thinks of the most famous – and successful – digital token available today. With investments often made on the say-so of high profile crypto-experts, those often-valuable opinions will be tallied up using BTC market noise and chatter.
“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,” Austin Burkett, the Global Head of Quant and Feeds at Thomson Reuters, said in a statement.
The new data feed will analyse 400 sources of data, trawling through endless news entries and various social media posts on the quest for ‘actionable insights’. This will give investors a bird’s eye view of the internet’s sentiment over Bitcoin, and we already know that opinion bares heavy on investments, especially given that Google searches directly link to the price of BTC, according to CoinTelegraph. The highest price Bitcoin got to coincided with the most Google searches of the term ‘Bitcoin’. It’s no coincidence.
The price of BTC has fluctuated in and around the $10k mark over the past two months following a dramatic crash that left many recently rich investors feeling sore. At the end of 2017 its price had peaked at the dizzying height of $20k causing a huge sell off and price-leveller. Fears over regulation and security have also affected the price, predominantly negatively of late.