Thomson Reuters (TR) announces the expansion of its sentiment data offerings to track the top 100 cryptocurrencies through its partnership with MarketPsych Data, a firm that focuses on quantitative behavioral science.
The new MarketPsych Indices (TRMI) package uses machine learning and natural language processing to measure a breadth of emotional and topical items across news and social media sites that may drive market participant behaviour in cryptocurrency markets. The firm claims the addition is notable because online communications and information flow are more significant drivers of cryptocurrency value than they are for traditional financial assets.
Sentiment analysis of cryptoassets 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, TR has now created a dedicated TRMI Cryptocurrency Sentiment package (TRMI 3.1), which monitors more than 2,000 global news and 800 social media sites in real-time, yielding 43 themes and sentiments on the top 100 cryptocurrencies.
Historical data dates back to 2009. To help identify the predictive value in this data, TRMI 3.1 is accompanied by visualisation tools and a suite of quantitative research results developed by MarketPsych, including regression and cross-sectional rotation models, to help traders identify influential themes and more rapidly develop actionable strategies.
“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,” says Pradeep Menon, managing director, global head of investing and advisory, 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.”