Investment Risk Tracking Shifts Towards Alternative Data Paradigm
In the ever-evolving world of investments, 2022 has seen a shift in paradigm, with a growing emphasis on alternative data to monitor investment risk. This new approach, if adopted, can significantly enhance investment decisions, according to industry experts.
One area where this is particularly relevant is in the digital asset market, where institutional investors may find themselves with blind spots in their portfolios due to a lack of digital channel monitoring for investment risk evaluation.
Enter Sentifi, a company at the forefront of this shift. Their Bitcoin Risk Score, introduced in 2022, has been making waves in the industry. This score captures sentiment and momentum, or market confidence, in bitcoin, and its inverse relationship with the Bitcoin closing price has been observed.
Periods of low Sentifi's risk score for bitcoin (indicating high market confidence) have coincided with periods where the closing price of bitcoin peaked. This provides a unique insight into the market, offering investors a tool to predict potential price movements.
But what about when the downside risk for Bitcoin is significant? Sentifi's risk score can also signal this, offering a valuable early warning system for investors.
Marina Goche, the CEO of Sentifi, is leading the charge in this new era of investment. With a wealth of experience in the industry, Goche's leadership has been instrumental in the development and implementation of Sentifi's innovative tools. However, further information about Goche's role as CEO could not be found in the provided data.
The global pandemic has had a profound impact on the world economy, affecting various regions, sectors, industries, and companies differently. As we navigate this recovery period, tools like Sentifi's Bitcoin Risk Score could prove invaluable in making informed investment decisions in the volatile digital asset market.
It is important to note that the views expressed in this article are those of the author and not necessarily those of AlphaWeek or The Sortino Group.
In conclusion, the digital asset market is expected to continue its volatility in 2022, driven largely by market sentiment. Tools like Sentifi's Bitcoin Risk Score offer a promising solution for investors seeking to mitigate risk and make informed decisions in this dynamic market.
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