The MarketVector Bitcoin Benchmark Rate (BBR) serves as a robust reference price for Bitcoin, denominated in US dollars. It is calculated using a one-hour median of volume-weighted prices, meticulously designed to prioritize accuracy, reliability, and resistance to potential market manipulation. This index underpins a variety of licensed financial products, representing a significant value in assets under management.
How the BBR is Calculated
The index's methodology is engineered for transparency and resilience. Its calculation is based on the volume-weighted median price average, derived from 20 separate three-minute intervals within a designated one-hour window. This approach helps smooth out short-term volatility and anomalies, providing a more stable and representative price point.
Price data is sourced exclusively from the top five exchanges as ranked by CryptoCompare's Exchange Benchmark. This ensures the inputs come from reputable, high-volume trading venues, further bolstering the index's integrity. The final calculated value is disseminated in real-time, offering market participants a reliable and up-to-date benchmark.
Key Index Parameters
A detailed set of parameters governs the BBR, ensuring consistent and transparent operation.
- Launch Date: June 2, 2020
- Calculator: CCData
- Dissemination: Real-time, from 00:00 to 24:00 Eastern Time (ET)
- Closing Time: 16:00 ET
- Base Date: December 31, 2015
- Base Value: 425.23
- Next Review: Scheduled for November 25, 2025
Performance and Historical Data
The BBR provides a clear view of Bitcoin's market performance through various return indexes, including price return and total return figures. Historical data allows for analysis over multiple timeframes, from year-to-date to performance since the index's inception.
Record Highs and Lows
Tracking the all-time and periodic highs and lows is crucial for understanding the asset's volatility and historical price range. This data is updated in real-time for the price return index and its variants, offering insights into market extremes over different periods.
Understanding Market Volatility
Volatility is a key metric for any asset. The BBR calculates and updates volatility figures daily, providing both one-month and one-year volatility readings. These metrics are essential for risk assessment and portfolio management strategies. 👉 Explore more strategies for managing digital asset volatility
Index Review and Maintenance Schedule
To maintain its relevance and accuracy, the BBR undergoes a semi-annual review process. The upcoming review is announced for November 25, 2025. This structured schedule ensures the index methodology remains aligned with the evolving digital asset market.
The review process follows a clear timeline:
- Index Data Cut-off: The date on which data is collected for the review.
- Announcement Date: The day when the results of the review are made public.
- Implementation Date: The effective date for any changes resulting from the review, which occurs on the next trading day.
Licensing the Index for Financial Products
A license from MarketVector is required to utilize the BBR index, its data, or associated trademarks for commercial purposes. This includes a wide range of applications such as:
- Financial research and analysis.
- The creation and promotion of financial products like exchange-traded funds (ETFs), mutual funds, and certificates.
- Developing derivatives, swaps, bonds, or other over-the-counter (OTC) products linked to the index's performance.
For institutions looking to create innovative investment vehicles, understanding the licensing process is a critical first step.
Frequently Asked Questions
What is the primary purpose of the Bitcoin Benchmark Rate (BBR)?
The BBR is designed to provide a reliable, accurate, and manipulation-resistant reference price for Bitcoin. It serves as a trusted benchmark for institutional investors and is used as the underlying index for various financial products, ensuring they are priced fairly and transparently.
How does the BBR calculation method prevent market manipulation?
The methodology uses a volume-weighted median price taken from multiple intervals over an hour and aggregates data from top-tier exchanges. This design minimizes the impact of anomalous trades or sudden price swings on a single platform, creating a more robust and reliable average price.
Who can use the BBR data and how?
While the data is public, any commercial use—such as basing a financial product on it, using it for paid research, or referencing it in marketing materials—requires a formal licensing agreement with MarketVector. This ensures proper usage and protects the integrity of the index.
What is the difference between the BBR and a simple average price from an exchange?
Unlike a single exchange's price, which can be susceptible to local liquidity issues or manipulation, the BBR aggregates data across multiple leading exchanges. Its median-based calculation filters out outliers, providing a more comprehensive and stable representation of the global Bitcoin market price.
How often is the BBR index reviewed and potentially reconstituted?
The index is reviewed on a semi-annual basis. The next review is scheduled for November 2025. These reviews ensure the methodology continues to reflect best practices and the changing market structure of digital asset exchanges.
Are there similar benchmark rates for other cryptocurrencies?
Yes, MarketVector and other providers offer similar benchmarks for other major digital assets. For instance, MarketVector also publishes an Ethereum Benchmark Rate, which provides the same robust pricing methodology for ETH, catering to the growing demand for reliable crypto benchmarks. 👉 Get advanced methods for tracking crypto benchmarks