Robert M. Ryerson is a New Jersey-based Certified Financial Fiduciary who meets the needs of diverse clients, from individuals and families to small business owners. Among Robert M. Ryerson’s ventures is Crytpo Currency Consultants, LLC, which assists clients in taking advantage of the significant upside potential offered by blockchain technology through ROTH IRAs that allow them to hold various cryptocurrencies.
One of the cryptocurrency market’s unique attributes is that it is tied closely to technology, from the way coin is generated and distributed to drivers of valuation. A recent article in Reuters pointed to one potential cause of bitcoin’s 20 percent increase in value in April being asset managers and hedge funds programming computers to search social media sites for triggers that shift digital currency prices.
Computer models are already in widespread use in identifying price differences spanning various cryptocurrency trading exchanges and adapting trading accordingly. With arbitrage opportunities narrowing in this realm, enterprising firms are moving toward identifying market-moving signals in social media. These next generation algorithms are adept in identifying price signals amid a myriad of background noise on sites such as Twitter, WeChat, and Reddit.
With Reddit’s main bitcoin subreddit (forum) boasting 1.1 million members and Twitter registering tens of thousands of mentions of bitcoin on a daily basis, the scope of the chatter is significant. Understanding the patterns through which social media information propagates and how this reflects investor sentiment can provide vital data about potential price changes.
