NASDAQ’s Crypto Price Movement Predictor on the Horizon?
The world’s second largest stock exchange by market capitalization, NASDAQ, is reportedly working on a product that will provide immense analytical assistance to institutional investors in the crypto-market.
NASDAQ is working on adding to its Analytics Hub a tool that will allow the user to predict the price fluctuations of certain digital assets in the crypto-market, Coin Desk reported citing a person familiar with the matter. The Analytics Hub allows investors to gauge market fluctuations using alternative data sources like social media by using tools of Machine Learning and Natural Language Processing (NLP).
The Analytics Hub was primarily used for the analysis of traditional assets traded through the exchange, but the adoption of tools specifically for cryptocurrency indicates a change in the financial world’s attitude towards digital currencies.
“Given the abundance of interest we are exploring cryptocurrency related datasets,” said Bill Dague, NASDAQ’s head of Alternative Data to Coin Desk. He further went on to reconcile, saying, “whether or not we launch a crypto-related product remains to be seen.”
The source mentioned in the report said that this new feature by NASDAQ is currently in its beta phase, with the launch scheduled for November. 500 crypto assets have been mentioned by the source, along with a three-point approach to the research, analyzing the flow of funds via data from exchanges, wallets, and social media sources.
“There’s the social media sentiment part, so applying machine learning and NLP, which will start with Twitter and might include StockTwits and then eventually perhaps Reddit,” the source added.
Earlier this year, Adena Friedman, CEO of NASDAQ, said that there were plans of offering a Bitcoin Futures product. In April, she mentioned that there was a possibility of a crypto exchange as well.
The stock exchange is not alone in this alternative data endeavor, with giants like Bloomberg, Reuters, and Dataminr showing interest in the realm of alternative data analytics.
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