The Bitcoin Price Index (Bitcoin Price Index, BPI) is a composite indicator that reflects the average value of bitcoin based on the data of a number of the largest trading venues. Since quotes on different exchanges can differ, an averaged index gives a more balanced picture of the market price than a quote on a single exchange.
The idea of the index is to aggregate prices from several sources according to a predefined methodology and to publish a single calculated value. This is convenient for analysts, media, and developers who need a representative starting point for assessing the market.
Where the index is used
- Analytics and reviews of the cryptocurrency market.
- Calculated values for payment and financial services.
- Integration through an application programming interface (API) into third-party applications.
It is important to understand that such an index reflects an averaged market picture but is not an official single price: the real cost of buying or selling always depends on the specific venue and the terms of the deal.
