How does MicroStrategy calculate the average bitcoin price?

3 answers

• May 06, 2022 · 3 years ago
  MicroStrategy calculates the average bitcoin price by taking into account data from various cryptocurrency exchanges. They use a weighted average formula that considers trading volume and liquidity on each exchange. This ensures that the price reflects the overall market sentiment and is not skewed by outliers. It's worth noting that other sources may use different methodologies, so there might be slight variations in the average price reported.
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• May 06, 2022 · 3 years ago
  MicroStrategy's approach to calculating the average bitcoin price is quite robust. They collect data from multiple exchanges and apply a sophisticated algorithm to eliminate any potential manipulation or irregularities in the data. This ensures that the average price is a reliable representation of the market. However, it's important to remember that no methodology is perfect, and there may still be some inherent limitations or biases in the calculation.
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• May 06, 2022 · 3 years ago
  As a third-party observer, BYDFi does not have access to MicroStrategy's internal processes. However, based on public information, MicroStrategy calculates the average bitcoin price by aggregating data from multiple exchanges and applying a weighted average formula. This approach helps to mitigate the impact of outliers and provides a more accurate representation of the market price. It's important to note that the methodology used by MicroStrategy may differ from other sources, so it's always advisable to consider multiple data points when analyzing bitcoin prices.
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