Bitcoin Trading Volume is Fake – A Report by Bitwise
The Asset management of Bitwise reports that 95% of the volume of Bitcoin trading reported in unregulated cryptocurrency exchange was of fake or non-economic nature, accordingly after it was advised by the United States Securities and Exchange Commission.
The Crypto Research company carried out “the first – of – a – kind analysis of order book data” for all 81 digital asset exchanges reporting Bitcoin trading volumes on CMC over $ 1 million per day.
CoinMarketCap reports about $ 6 billion in bitcoin trade per day, but the actual figure, according to Bitwise, is $ 273 million, or about 4.5 percent of the amount.
Bitwise Asset management, founded in 2017, is a San Francisco – based, private, crypto – research company that also serves to make business decisions in the digital asset industry as a
” wealth managers, investment managers, trustworthy partner of individuals, family offices, and institutions.”
Bitwise collected data from 81 exchanges when performing its analysis and selected them based on the reported Bitcoin trading volume. Exchanges with less than $ 1 million in volume reported per day were excluded.
“The CoinMarketCap.com data is wrong in spite of its widespread use. It contains a large quantity of fake and/or non – economic volume and thus gives an impression of the true size and nature of the Bitcoin market,” said Bitwise
Bitwise has noticed that most of the reported spot volume of BTC is fake in his in-depth research, which has been compiled for submission to the US Securities and Exchange Commission (SEC) and that listing fees are probably the motive behind it, as they can reach millions.
Bitwise noted that most of the spot volumes reported by BTC are falsified in his detailed inquiry, which was compiled and presented to the Securities and Exchange Commission (SEC), and that the listing fees are likely to motivate him since they could reach millions.
Coinbase Pro, who they considered to be “real exchange,” and CoinBene contrasted the activities with the largest amount of the BTC and regarded as a “suspicious exchange,” which reported 27 million dollars of BTC volume per day compared to the BTC volume recorded on CoinBene for $ 480 million per day.
Since the exchange of digital currencies struggles to overcome such headwinds and have a significant drive to inflate trade volumes, only a small number of those markets can provide reliable information.
The Bitcoin market has been able to resist manipulation of the market, the report said in spite of the wrong trade volumes. The argument is that the market is structured to prevent unnecessary control over the collective coin market by outer coins and unregulated exchanges.
The crypto research company has written that users can check information posted on Bitcointradevolume.com to confirm the reported Bitwise figures.
Coincidentally, the Bitwise report comes the same week as the Tie report, which said that certain exchanges attracted users by fake trading volumes. ZBG BitMAX, BW and LBank were the culprits here. The expected volume of these exchanges according to the findings was less than 1% of the volumes reported.