Nasdaq Could be Building a New Instrument to Predict the Cryptocurrency Market

Nasdaq could be building a new analytical tool that would help predict cryptocurrency price movements. According to people familiar with the company’s plans the U.S. stock exchange is ready to add new market prediction tools to its Analytics Hub.

The hub has been created using machine learning and Natural Language Processing (NLP) which would help the system analyze social media and other sources. This would clearly help investors take better decisions about their investments and have a better idea how the market could behave.

Until now, the Analytics Hub was focused solely on traditional assets. However, with the growing interest in virtual currencies the intention is to expand it to the crypto market.

With this new service, Nasdaq could be providing sentiment on over 500 different cryptocurrency assets. Furthermore, it would take a three-pronged approach to its analysis. It will be looking at fund flows using wallets, data from exchanges and social media.

The source explained that the new system would be analyzing Twitter, StockTwits and, eventually, Reddit.

With the intention to have a more complete and fair understanding about which is the market sentiment in social media the alternative data analytics field would include Reuters and Bloomberg.

This information is revealed months after Nasdaq’s CEO, Adena Friedman, revealed that the company was working in order to offer a bitcoin futures product. Moreover, Nasdaq could even create a virtual currency exchange.

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