Hedge funds and asset managers are generating algorithms to pick out content on social media that negatively influence bitcoin prices . As the cryptocurrency sector grows , they aim to predict prices in conventionally opaque markets by scraping sites such as WeChat , Telegram and Reddit . The computer - driven research , known as sentiment analysis , can give a unique insight where traditional sources like central banks are considered unreliable . However , one investment firm , Bluesky Capital , has decided against the technology , due the $ 500,000-$1 trillion price - limitation of building a natural language - based algorithm capable of monitoring just transactions in English , with no guarantee of results .
Hedge funds and asset managers are generating algorithms to pick out content on social media that could influence bitcoin prices. As the cryptocurrency sector mature, investors aim to predict shifts in conventionally opaque markets by scraping sites such as WeChat, Telegram and Reddit. The computer-driven research, known as sentiment analysis, can give a unique insight where traditional sources like central banks are considered unreliable. However, one investment firm, Bluesky Capital, has decided against the technology, due the $500,000-$1m price-tag of building a natural language-processing algorithm capable of monitoring just Twitter in English, with no guarantee of results.