Coinbase Direct Listing Valuation Analysis

TMI Snapshot: Text-Mining the Thematics Behind Gold's Disappointing Fall

TMI Snapshot:  Update on Bitcoin Vs. Gold Via Text Mining

TMI Indicators:  November Commodity Sentiment - Base Overshoots, Ferrous Improves, Gold Bottoming?

Managing Director

Elan Gore

TMI Data Science

TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade & traditional media.  Our proprietary software, TMI Machine, is a text-mining platform designed with the buy-side & capital markets professional in mind, text-mining the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income & individual equities.  TMI provides custom leading indicators and systematic trading strategies, operating at the nexus of linguistics & statistics drawing on vast experience in investment banking and hedge fund settings in senior quantitative and fundamental roles.  

TMI Data Science was founded by Elan Gore, an award-winning Senior Global Basic Materials Equity Analyst & China Economist with 15 years of experience in North American hedge funds & institutional managers; and Alessandro Porrino, Ph.D., an Algorithmic Trading Analyst and Programmer with 10 years of front-office experience ranging from complex FX option pricing to auto-hedging strategies at Bank of America Merrill Lynch and Standard Chartered.  Mr. Gore holds an MBA in Finance from New York University Stern School of Business, and Mr. Porrino holds a Ph.D. in Systems Engineering from Brunel University London.

Cross Asset Strategy

Multiple Countries / Cross Asset Strategy

<ul>
<li>In <a href="https://www.smartkarma.com/insights/tmi-snapshot-update-on-bitcoin-vs-gold-via-text-mining" target="_blank" data-smartkarma-citation="insights:46576" rel="noopener">TMI Snapshot:  Update on Bitcoin Vs. Gold Via Text Mining</a> we compared the trajectory of sentiment in articles discussing BTC as a "store of value" relative to similar mentions of gold; at the time, December 22, we saw a sharp divergence with BTC "store of value" sentiment at a new high of +2x STDEVs while gold was gathering significant negative momentum on the same topic</li>
<li>Trends have been mean-reverting since, with sentiment for BTC softer on the "store of value" question while gold continues to stabilize</li>
<li>The discussion of gold as an inflation hedge has made a notable comeback (volumetrically) after dropping sharply around the November elections; this has not affected the BTC inflation hedge narrative, which continues to trend despite recent volatility</li>
<li>Reports of BTC institutional adoption surged in November-December and are still trending albeit at a slower rate; but discussion of cryptocurrency regulation has surged in recent weeks to a new multi-year high</li>
<li>Mentions of BTC in conjunction with "bubble" are up 4-5x STDEVs since the second week of January</li>
<li>Based on the above signals, and in the context of the alleged "double-spend" headlines, the prevailing narrative of BTC competing with gold over the same AUM pool in a zero-sum game appears to be losing steam on the margin</li>
</ul><div class="content-highlight"><p>TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade &amp; traditional media. Our proprietary tool text-mines the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income &amp; individual equities. </p></div>


In TMI Snapshot:  Update on Bitcoin Vs. Gold Via Text Mining we compared the trajectory of sentiment in articles discussing BTC as a "store of value" relative to similar mentions of gold; at the time, December 22, we saw a sharp divergence with BTC "store of value" sentiment at a new high of +2x STDEVs while gold was gathering significant negative momentum on the same topic
Trends have been mean-reverting since, with sentiment for BTC softer on the "store of value" question while gold continues to stabilize
The discussion of gold as an inflation hedge has made a notable comeback (volumetrically) after dropping sharply around the November elections; this has not affected the BTC inflation hedge narrative, which continues to trend despite recent volatility
Reports of BTC institutional adoption surged in November-December and are still trending albeit at a slower rate; but discussion of cryptocurrency regulation has surged in recent weeks to a new multi-year high
Mentions of BTC in conjunction with "bubble" are up 4-5x STDEVs since the second week of January
Based on the above signals, and in the context of the alleged "double-spend" headlines, the prevailing narrative of BTC competing with gold over the same AUM pool in a zero-sum game appears to be losing steam on the margin
TMI Data Science utilizes Natural Language Processing to build custom leading indicators using unstructured data sourced from the global financial, trade &amp; traditional media. Our proprietary tool text-mines the global media to discern and quantify nuanced qualitative shifts in press coverage as they apply to macroeconomics, equity indexes/ETFs, commodities, currencies, fixed income &amp; individual equities. 

TMI Snapshot:  Bitcoin Vs. Gold Update and Recent Crypto Topics Via Text Mining