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Thomson Reuters develops indicator to check investor’s mood

Thursday, 15 March 2018 10:25
Thomson Reuters develops indicator to check investor’s mood

Growing popularity of digital actives has a need in creating technical analysis instruments, which can help crypto traders to orient better in cryptocurrency market fluctuations. Thomson Reuters Media Company together with MarketPsych Data would suggest such type of decision soon. New indicator would help in psychological analysis of digital markets. He will guess cryptoinvestor’s moods.

Principles of indicator’s work

Experts from different countries noticed that the growth of the bitcoin price is directly proportional to the number of requests for the bitcoin tag in the search engines. Thus, what happens in the Internet directly affects the cryptocurrency demand. Thomson Reuters took this factor into account and decided to use it for a new index developing.

With the help of the cryptocurrency market mood indicator, the main trends will be determined, which will allow displaying trade orders and managing risks more accurately. To form the data, the indicator will examine information flows from more than 400 online resources. This will take into account not only official data, but also forums and social networks rumors that may affect the mood of cryptoinvestors.

Investor sentiment analysis is a fairly effective tool to forecast when working in financial markets. An example of such a tool is the "greed and fear index", which is used at the Chicago Stock Exchange of options since the end of the last century. Thomson Reuters has a lot of experience in the area of ​​behavioral index calculations, so the crypto market mood’s indicator will become very popular among traders and investors.

Coinbase’s tax calculator for cryptotraders

Coinbase company also introduced new tool for working with cryptocurrency. According to USA laws, all operations with cryptocurrency are taxed. So cryptocurrency exchange developed special calculator to count trade operations results.

Thanks to this instrument, platform users could make orders about growth or losses of capitals to fill tax returns. As Coinbase informed, the “first-in-first-out” method is a base of calculations.

But also, the company notified its clients, that the calculator isn’t official tax tool. The exchange is recommended its users to consult with tax inspector to check correctness of their calculations.

Remind, in the last year’s end, the Northern District of California federal court ordered Coinbase exchange to provide data to about 13 thousand customers. The request  affected users who performed $ 20000 transactions on the company's platform.

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David Melton
David Melton

Financial expert. I work with investors and different companies. I write analytical reviews for newspapers and TV channels and I also manage researching projects