The Bitcoin price is often measured in USD and is referred to as the BTC/USD pair. While there are many exchanges that list the BTC/USD price, it can be difficult to get an accurate read on the true price of Bitcoin.
This is because each exchange has different fees, liquidity, and order book depth. As a result, the BTC/USD prices on different exchanges can vary quite a bit.
This is where Bitcoin indexes come in. A Bitcoin index is a single price that represents the average price of Bitcoin across all exchanges.
By taking into account the prices of all major exchanges, a Bitcoin index provides a more accurate representation of the overall market.
There are many different Bitcoin indexes out there, but the two most popular are the Bitstamp BTC Index and the Coinbase BTC Index. Both of these indexes take into account the prices of major exchanges and provide an accurate representation of the overall market.
So, which is the best Bitcoin index? While both the Bitstamp and Coinbase indexes are accurate, we believe that the Coinbase index is a better measure of the true Bitcoin price. This is because Coinbase is one of the largest and most popular exchanges in operation today.
As a result, their index is more reflective of the overall market than other indexes.