CoinDesk Indices Launches the Bitcoin Trend Indicator

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Apr 13, 2023, 08:59 ET

A daily signal which conveys the presence, direction, and strength of the current price trend of bitcoin

NEW YORK, April 13, 2023 /PRNewswire/ -- CoinDesk Indices (CDI), a subsidiary of CoinDesk and the leading provider of digital asset indices by AUM since 2014, today announced the launch of the Bitcoin Trend Indicator (BTI). The BTI is a daily signal which conveys the presence, direction and strength of the trend in the price of bitcoin using a purpose-built, non-discretionary algorithm.

The signal broadcasts one of five possible values, each corresponding to an indicated direction and strength of trend in the price of bitcoin. The BTI is calculated daily, and is derived from historical daily levels of the CoinDesk Bitcoin Price Index (XBX), using a non-discretionary methodology. It has been backtested over a five-year historical period using XBX data.

"We are excited to offer the Bitcoin Trend Indicator, which has been rigorously researched and constructed," said Andy Baehr, CFA, Managing Director at CoinDesk Indices. "We designed the BTI to help identify trends in the price of bitcoin, assisting asset managers to create new dynamic products, and helping investors make better-informed allocation decisions over a long-term horizon."

Asset managers and investors can utilize the BTI for long-only dynamic allocation strategies. The BTI's research-driven construction uses a widely utilized technique known as moving average crossovers to identify trends. This technique compares recent short-term price averages to recent long-term price averages. The BTI is designed to be implemented in systematic strategies that allocate between bitcoin and a risk-free asset. These strategies can help investors navigate long-term bitcoin drawdowns, reducing potential risks. CDI has observed that a hypothetical portfolio of bitcoin and risk-free cash informed by the BTI has reduced exposure during "crypto winters" while still participating in price uptrends.

CDI's unparalleled experience base includes institutional-class indexing, structuring and research, delivering clarity to the digital asset economy through innovations like CoinDesk's Digital Asset Classification Standard (DACS) and the CoinDesk Market Index (CMI). For more information on CDI's go-to-market expertise and the Bitcoin Trend Indicator, please visit coindeskmarkets.com/bti.

About CoinDesk Indices

CoinDesk Indices (CDI), a subsidiary of CoinDesk, has been the leading provider of digital asset indices by AUM since 2014. We are driven by precision, rigor, research and a desire to educate the marketplace and empower investors. CoinDesk, a media, events, data, and indices company, is the most influential and trusted platform for the global crypto ecosystem.

Press Contacts

Casey Craig, Global Head of Communications at CoinDesk
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JConnelly
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Disclaimer

CoinDesk Indices, Inc. ("CDI") does not sponsor, endorse, sell, promote or manage any investment offered by any third party that seeks to provide an investment return based on the performance of any index, indicator or signal. CDI is neither an investment adviser nor a commodity trading adviser and makes no representation regarding the advisability of making an investment linked to any CDI index, indicator or signal. CDI does not act as a fiduciary. A decision to invest in any asset linked to a CDI index, indicator or signal should not be made in reliance on any of the statements set forth in this document or elsewhere by CDI. All content contained or used in any CDI index, indicator or signal (the "Content") is owned by CDI and/or its third-party data providers and licensors, unless stated otherwise by CDI. CDI does not guarantee the accuracy, completeness, timeliness, adequacy, validity or availability of any of the Content. CDI is not responsible for any errors or omissions, regardless of the cause, in the results obtained from the use of any of the Content. CDI does not assume any obligation to update the Content following publication in any form or format. © 2023 CoinDesk Indices, Inc. All rights reserved.

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