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

Coinbase Direct Listing Valuation Analysis

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

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

Introducing TMI Data Science: Delivering Alpha With Custom NLP-Based Leading Indicators

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 last month's <a href="https://www.smartkarma.com/insights/tmi-snapshot-text-mining-the-thematics-behind-gold-s-disappointing-fall" target="_blank" data-smartkarma-citation="insights:45821" rel="noopener">TMI Snapshot: Text-Mining the Thematics Behind Gold's Disappointing Fall</a> we observed a sharp decline in mentions of gold as an inflation hedge relative to a dramatic increase in mentions of Bitcoin in the same context in the media</li>
<li>Given aggressive signaling of institutional BTC adoption since, we revisit the topic of BTC vs. gold across a few vectors in effort to characterize the state of relative sentiment </li>
<li>Sentiment on BTC as a store of value is up +2x STDEVs to its highest in nearly a year, while sentiment on gold as a store of value has fallen -1.6x STDEVs to levels last seen in April, with no signs of improvement yet; volumetrically, media discussion of BTC as a store of value hit an all-time high in November and continues to increase</li>
<li>Faint signs of gold stabilization are seen in the inflation discussion, where mentions of gold in the context of inflation saw negative momentum peak at -2x STDEVs in November but have been steadying since; BTC mentions in an inflation context continued to increase sharply</li>
<li>Mentions of BTC in the context of institutional adoption began to surge 3-4x STDEVs last month, and continue to increase at the same rapid pace</li>
<li>FOMO or not, extremely low institutional &amp; family office ownership of BTC vs. elevated gold ownership provide relative tailwinds for the cryptocurrency (absent material vol spikes) while gold positioning has only partially unwound</li>
<li>At least one noted strategist cites gold's underperformance of BTC as a reason to buy bullion here, but we have yet to see a significant catalyst</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 software 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 last month's TMI Snapshot: Text-Mining the Thematics Behind Gold's Disappointing Fall we observed a sharp decline in mentions of gold as an inflation hedge relative to a dramatic increase in mentions of Bitcoin in the same context in the media
Given aggressive signaling of institutional BTC adoption since, we revisit the topic of BTC vs. gold across a few vectors in effort to characterize the state of relative sentiment 
Sentiment on BTC as a store of value is up +2x STDEVs to its highest in nearly a year, while sentiment on gold as a store of value has fallen -1.6x STDEVs to levels last seen in April, with no signs of improvement yet; volumetrically, media discussion of BTC as a store of value hit an all-time high in November and continues to increase
Faint signs of gold stabilization are seen in the inflation discussion, where mentions of gold in the context of inflation saw negative momentum peak at -2x STDEVs in November but have been steadying since; BTC mentions in an inflation context continued to increase sharply
Mentions of BTC in the context of institutional adoption began to surge 3-4x STDEVs last month, and continue to increase at the same rapid pace
FOMO or not, extremely low institutional &amp; family office ownership of BTC vs. elevated gold ownership provide relative tailwinds for the cryptocurrency (absent material vol spikes) while gold positioning has only partially unwound
At least one noted strategist cites gold's underperformance of BTC as a reason to buy bullion here, but we have yet to see a significant catalyst
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 software 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:  Update on Bitcoin Vs. Gold Via Text Mining