As cryptocurrency becomes increasingly important on the financial markets, traders and investors need the best tools to analyze and predict price movements. In November, Nasdaq are set to launch a new crypto analysis tool – here’s what this will mean.
Coinspeaker have heard from sources close to Nasdaq that a new cryptocurrency price movement prediction and analysis tool is currently in beta testing. It is set to be added to Nasdaq’s Analytics Hub in November.
Aiming to discover just what this new product can offer traders and investors interested in cryptocurrencies, Coinspeaker have explained what they know so far.
The author shares that the new tool will rely heavily on ‘alternative data’ – that is, it will not only look at actual price movements in making its predictions, but will also parse things like social media data to intelligently gauge sentiment about the crypto market as a whole, individual currencies like Bitcoin and Ethereum, and crypto trading platforms. This is exciting news for those who regularly participate in spread betting on cryptocurrencies.
Coinspeaker report that Nasdaq’s Head of Alternative Data, Bill Dague, has previously said (on the topic of a potential crypto analysis tool):
“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.”
With sources saying that the hypothetical tool he was discussing is currently in the later stages of testing, Coinspeaker believes we can expect to see a tool that can handle huge amounts of data from the web, as well as financial data, and can use neural networks and machine learning to provide highly sophisticated algorithmic predictions.
This could be extremely important for customers. While there is a huge amount of buzz around neural networks in general in the tech industry of late, the possibilities this kind of technology offers in the financial sector is something that is already widely in use. Combining the big data analysis approaches Nasdaq already have with algorithms that can actually understand market sentiment will provide an extra layer of insight to investors.
In this in-depth article about the upcoming Nasdaq tool, Coinspeaker also discusses the current state of the cryptocurrency market. The author notes that current prices have fallen substantially since the all-time highs on the major cryptocurrencies, with Bitcoin at 75% below its highest price and Ethereum 85% below.
However, as it was explained, this is partly due to a temporary suspension of trading on Bitcoin Tracker One (“CXBTF”) and Ether Tracker One (“CETHF”) by the SEC. Crypto enthusiasts are reportedly optimistic that some of the current downturn will be reversed when this suspension is lifted. In any case, traders can be just as interested in falling prices as rising ones, so new analytics will offer some powerful new insights whatever happens in crypto.
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