The NASDAQ, the electronic stock market located in Times Square in New York, is almost ready to launch an advanced analysis product for trading hundreds of cryptocurrencies: a crypto NASDAQ Analytics Hub.
According to internal sources, the company is about to introduce a set of tools that can make assumptions about the crypto market and predict movements with its Analytics Hub, which, based on the analysis of the prices and on the understanding of the natural language contained in social media through the use of AI, wants to provide investors with a more complete view of market trends and developments.
So far, the NASDAQ Analytics Hub data has been based on the study of traditional markets, such as the stock market, and this would be no more than a further example of the interest of ordinary finance in virtual currencies.
Bill Dague, NASDAQ’s head of alternative data, told CoinDesk that “given the abundance of interest, we are exploring cryptocurrency related datasets“.
Dague also said that the release of a related forecasting tool is not yet a sure thing.
Furthermore, internal sources said that the state of implementation of the analytical tool is very advanced, practically at the final testing phase, and added that it will be able to follow the evaluations of 500 cryptocurrencies.
This analytical tool will be very useful for day traders and for setting up automatic algorithms on a daily basis.
At the same time, a trader is not a medium/long term investor. As is already the case within traditional markets, this type of instrument could induce a contraction in volatility, but without erasing the risks of the medium term.
We remember that the CEO of NASDAQ, Adena Friedman, in April had expressed the desire to open a cryptocurrency exchange connected to the stock exchange, and this project would be consistent with the plans announced.