The second largest stock exchange of the world Nasdaq can provide institutional investors with a special tool for analyzing the crypto markets.
According to a source familiar with the plans of the exchange, a tool for forecasting price movements of digital assets will be added to the Analytical Exchange Center, which was launched last year. The service uses machine learning and natural language processing algorithms to collect data in social networks and other sources of information and gives investors a more complete picture of possible market movements.
At the moment, only traditional assets are available in the Analytical Center, but the possible emergence of instruments related to cryptocurrencies is another signal about Wall Street’s interest in this sector.
“Given the interest, we will explore cryptocurrency assets. But whether the product associated with cryptocurrencies will be launched is not yet known, ” – said the head of Nasdaq on alternative data, Bill Dague.
However, the source of the publication, responsible for the new product, stressed that the testing of the tool is already underway. A full-fledged launch of cryptocurrency functionality is planned for November.
It is reported that the new service will predict traffic of about 500 CY. The tool will use a three-way approach, analyzing the movements of funds on wallets, data from crypto-exchange platforms and social networks.
“The tool will use machine learning and natural language processing first on Twitter, then StockTwits can be added in the future, perhaps Reddit,” the CoinDesk source said.