Crypto Index

Definition ∞ A crypto index is a statistical measure that tracks the performance of a selected group of cryptocurrencies, designed to represent a specific segment of the digital asset market or the overall market. These indices are constructed using various methodologies, such as market capitalization weighting, to provide a benchmark for investment performance. They allow investors to gauge market trends and diversify exposure without directly owning individual assets.
Context ∞ Crypto news outlets frequently reference various crypto indices to provide readers with a broad overview of market movements and sector performance. The launch of new indices or changes in their composition often signals evolving market sentiment or the emergence of new asset classes. Investors utilize these indices to inform their strategies and understand the broader dynamics of the digital asset economy.