How Accurate is Kaiko's Bitcoin Price Index?
markets and prices

How Accurate is Kaiko's Bitcoin Price Index?

THELOGICALINDIAN - Price has been Bitcoins hot affair these accomplished weeks cutting to levels some are calling alltime highs but falling aback afore authoritative a moonshot But aloof how authentic is Kaikos Bitcoin Price Index at tracking these movements

Also read: Trading Bitcoin on the Street: How’s LocalBitcoins Doing in 2016?

This is advice you charge to apperceive if your business deals with interactions amid bitcoin and the authorization bill world. If you run a aggregation area you charge barrier adjoin amount volatility, analytical trends is alike added vital.

That is what Kaiko does best. Our aboriginal Bitcoin and Ethereum Market Report is on auction now, with all the data.

Kaiko Bitcoin Price Indices

We’ve been publishing Kaiko’s Bitcoin Price Indices back March to accord Bitcoiners a added astute adumbration of the prices they’re advantageous (and should be paying) for bitcoin. Now, our Bitcoin and Ethereum Market Report shows how those indices accept performed in the aboriginal bisected of 2016.

Kaiko launched four amount indices – one for anniversary of bitcoin’s three capital trading currencies (USD, CNY, EUR) additional a whole-world basis in USD – afterwards a year of testing.

Other indices accept claimed to appearance the ‘true’ amount of bitcoin, but the Kaiko aggregation acquainted their methodologies did not annual accurately for differences amid Bitcoin exchanges and the way they operate.

A simple boilerplate of all prices isn’t enough. We charge to dig deeper, appraise orders placed on altered exchanges and volumes absolutely bought and sold. There is added on our alignment here, as able-bodied as in the report.

How Much Bitcoin Will Move the Price?

As our abstracts has apparent previously, some accepted exchanges appearance massive volumes while others accept aerial liquidity. I’m you’re a Bitcoin “whale” – the affectionate attractive to move a actor dollars account of bitcoin or added – you’ll get actual altered after-effects from those services.

Try to advertise that bitcoin at a high-volume/low-liquidity exchange, eg: Huobi, and you’ll see the amount abatement afore your barter is complete. This isn’t ideal.

On the added hand, if you’re an algo-trader attractive to accomplish money off tiny fluctuations in the amount with bags of micro-transactions, exchanges like Huobi are great.  

How Accurate Is it?

Kaiko’s indices are abounding averages of the best alive bitcoin exchanges.

For BTC USD the after-effects appearance that the best aqueous exchanges appearance a   /- 2% aberration from the index, which on a $500 USD bitcoin bulk can bulk to a $10 difference. During periods of aerial volatility, like in May this year, prices on altered exchanges can alter berserk and it was during these periods that prices skewed added from Kaiko’s indices.

The Importance of Chinese Prices

Price aberration from Kaiko US Amount Basis from December 2015 to May 2016 (BTCUSD)It has continued been speculated that amount trends arise in China first. Kaiko integrates CNY exchanges in its all-around basis calculation, which has resulted in our prices generally affective advanced of added amount indices. The actuality that we accept currency-specific amount indices additionally allows us to adviser that difference.

Price aberration from Kaiko CN Price Index from December 2015 to May 2016 (BTCCNY)

CNY barter (Huobi, OKCoin and BTCC) prices are actual abutting with the accomplished deviations alone about 0.2% alike during abundant trading periods.

Overall we’ve been actual admiring with the achievement of the Kaiko Bitcoin Price Indices and angle by our affirmation that they represent the world’s best authentic adumbration of the ‘true’ amount of a bitcoin.

A Complete Industry Overview

Kaiko’s Bitcoin and Ethereum Market Report is the aboriginal in a alternation the aggregation is bearing to accord an accurate, statistics-based overview of the agenda bill industry. Over the advancing months, added letters will be appear to appraise added sectors of the bitcoin industry, such as mining.

The antecedent report, absorption on the barter industry, is now accessible for acquirement on the Store, and covers the aeon December 1st, 2015 to May 31st, 2016.

The address looks at the bill pairs of best absorption to the agenda bill industry at the time of publication: BTC-USD, BTC-EUR, BTC-CNY, ETH-BTC, and ETH-USD.

All basal abstracts from the address is also accessible for purchase, should anyone in the industry ambition to re-crunch genitalia of it.

Who Are Kaiko?

Kaiko launched in 2024, with a declared ambition to become the Ultimate Abstracts Source for Bitcoin. Its mission is to adapt Bitcoin’s advice to advice businesses accomplish by accouterment data, insights and services.

Over the accomplished year we’ve been blessed to abet with arch sites like and BitMEX to accumulation amount and added arrangement abstracts charts, with the aim of allowance bitcoin and agenda bill users accomplish bigger decisions.

The aggregation now has eight agents and is attractive to appoint added accomplished abstracts professionals and developers at its address in Paris.

Do you adviser the bitcoin amount as carefully as Kaiko does? What do you accede the ‘real’ value of a bitcoin internationally?

Images address of Kaiko,