Money Managers Are Paying Big Bucks to Interpret Your Bitcoin Tweets

Algorithms that can decode market sentiment are making waves in the institutional crypto landscape, a July 17 report from Reuters claims. 

An Arms Race for Algorithms

With the resounding return of Bitcoin’s (BTC) volatility amid an ever-hotter crypto market, hedge funds and asset managers are increasingly turning to software developers to help them interpret and harness sentiment signals to their advantage.

Bin Ren — CEO of Alan Howard-owned Elwood Asset Management — told Reuters that the soaring interest in developing algorithms capable of identifying price clues from the tumultuous social media landscape has become akin to “an arms race for money managers.”

While A.I. and other software-driven sentiment analysis has long been an accepted tool in traditional financial markets, Reuters argues that crypto’s nativity to the internet makes the asset class potentially an ideal fit for such algorithmic parsing tools.

Moreover, the crypto sector isn’t served by centralized…