How does bitcoin make you feel?
The answer probably depends on how the digital currency's price has behaved in the last 24 hours. Owning bitcoin seems to be a thrilling – and at times, frightening – rollercoaster of emotions. Attitudes might also depend on a person's identification as a "bitcoin bull" (an individual who wholeheartedly believes that the price of bitcoin will generally go up) or as a "Nocoiner" (an individual who strongly believes that the price of bitcoin is unjustifiably high).
On social media, there's often palpable anxiety regarding the dramatic bitcoin price movements that occur after major events (e.g., hacks, exchange closures) and significant regulatory announcements (e.g., SEC statements, CFTC-related matters). Cryptocurrency-dedicated news websites also provide some insight into the overall digital currency markets.
For these reasons, Thomson Reuters Corporation is now packaging and releasing information for investors and traders on the general attitudes about bitcoin as seen on social media and news websites. The company, which has supported similar indices for conventional financial markets since 2012, released version 3.0 of its MarketPsych Indices (TRMI) on March 12, 2018.
The Thomson Reuters website explained the latest additions:
"Over 400 news and social media sites, many specific to cryptocurrencies, were added to the feed. Each site is scanned and scored in real-time, aiming to capture market-moving sentiments and themes."
It's not immediately apparent which websites are included in the bitcoin sentiment data feed, or what scoring system is utilized. Anytime there is a brand-new indicator or price aggregator, it's vital to determine how it might be unduly influenced. Especially in the cryptocurrency world, it's critical to understand how the data feed would address issues like sponsored content or fake news, which might infiltrate the system.
A spokesperson for Thomson Reuters directed ETHNews to MarketPsych CEO Richard Peterson, MD. Peterson has yet to reply to our request for comment. We will continue to provide coverage as additional details emerge.
Note: Our coverage of Thomson Reuters and MarketPsych is not an endorsement of their products. Nothing contained in this article should be interpreted as a statement about the accuracy of their products, and readers are reminded to perform their own due diligence before making any financial decisions.