Concept
BTCX is an open index that measures Bitcoin's value relative to key global assets, including gold (XAU), crude oil (OIL), real estate (USRE), and the stock market (SPX500). Unlike traditional Bitcoin dominance indices that compare BTC to other cryptocurrencies, BTCX places Bitcoin in a global economic context, analyzing its performance relative to traditional financial assets.
This index is aligned with Donald Trump's announcement on creating Bitcoin reserves, reinforcing Bitcoin's recognition as a strategic asset. As BTC is now considered for state and institutional reserves, it is logical to compare it against the world's primary financial assets, such as gold, oil, equities, and real estate.
Methodology
BTCX is calculated using the following components:
- Gold (XAU/BTC) – Measures Bitcoin's competition with gold as a store of value and inflation hedge.
- Crude Oil (OIL/BTC) – Reflects Bitcoin's relationship with the energy market and the global economy.
- Real Estate (USRE/BTC) – Compares BTC to real estate as a long-term capital preservation asset.
- Stock Market (SPX/BTC) – Evaluates Bitcoin's performance relative to traditional risk assets (stocks).
BTCX increases when Bitcoin outperforms fundamental assets and declines when it lags behind traditional markets.
Purpose & Use Cases
- Global Investment Indicator – BTCX helps investors assess Bitcoin's strength as an alternative reserve asset.
- Macro-Economic Analysis – The index provides insights into Bitcoin's interaction with key global assets across economic cycles.
- Risk-On / Risk-Off Signal – BTCX reflects investor sentiment shifts between crypto assets and traditional financial markets.
Key Differentiation
BTCX is not just a crypto index but a bridge between digital and traditional finance. It provides a macro-economic perspective on Bitcoin's role among established reserve assets.
Following Donald Trump's announcement of Bitcoin reserves, BTC is entering a new phase of recognition as a potential state and institutional financial asset. In this context, BTCX serves as a crucial tool for investors, macro analysts, and regulators to evaluate Bitcoin's positioning among traditional financial assets.
