Scouring Social Media for Market Clues

Social media may be the bane of society, but that doesn’t mean it doesn’t have uses in financial services. For one, some online lenders have been using social media data for years when it comes to determining loan applications. Now investors are looking to social media to gain clues to predict the volatile crypto market. According to Reuters, “Hedge funds and asset managers seeking an edge are training computers to scrape social media sites for triggers that could move the price of digital currencies.” Traders utilize any information to gain a slight edge, and social media could be the next frontier.