A recent Forbes analysis has revealed that a staggering 51% of all Bitcoin trading volume globally is fake or non-economic. This means that more than half of all trades being made each day on cryptocurrency exchanges and trading platforms are not actually real.
This is a huge problem for the crypto industry, as it undermines the legitimacy of the market and makes it difficult for investors to know what is really going on. It also raises serious concerns about the safety of investing in cryptocurrencies, as fake trades could be used to manipulate prices.
The report found that the global daily bitcoin volume for the industry was $128 billion on June 14th, but that this is 51 percent less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources. In other words, more than half of all the trading volume being reported is not real.
This is a huge problem for the crypto industry and it needs to be addressed as soon as possible. Otherwise, the market will continue to be dominated by fake trades and it will become even harder for investors to know what is really going on.
Industry lacks genuine method of calculation
According to a report by Bitwise Asset Management, over half of Bitcoin’s daily trading volume is fake. The report further revealed that the industry lacks a genuine method of calculation, with even the most reputable research firms providing conflicting numbers.
This lack of transparency could be detrimental to the long-term success of the cryptocurrency industry, as it makes it difficult for investors to make informed decisions. Until there is more clarity around this issue, it is likely that the crypto market will continue to be volatile and unpredictable.
Now, a new report from The Tie has found that the vast majority of Bitcoin trading volume is still fake. So buying bitcoin (https://www.bibvip.com/en_US/spot/BTC_USDT) at a reliable exchange is important.
Mismatch on trading platforms
According to The Tie’s analysis, 21 out of the top 30 crypto exchanges by trading volume are reporting fake volumes.
What’s more, the report estimates that over 50% of all Bitcoin trading volume is fake.
The problem of fake trading volume is particularly acute in the cryptocurrency industry because there are no centralized exchanges like there are in traditional financial markets.
Downfall after stabilisation in the market
Bitcoin (https://www.nerdwallet.com/article/investing/what-is-bitcoin) prices had stabilised around the $23,000 to $24,000 level after plunging below $20,000 in June. However, on Saturday, the world’s largest cryptocurrency plunged once again below $20,000 following Federal Reserve Chair Jerome Powell’s keynote address.
Many experts believe that Powell’s comments about inflation were one of the key reasons behind Bitcoin’s latest plunge. Inflation remains a major concern for cryptocurrencies since it generally leads to a decrease in demand for these assets.
It is still too early to say whether this latest drop in Bitcoin prices is just a temporary setback or the beginning of a more prolonged sell-off. However, one thing is certain – the cryptocurrency market remains highly volatile and investors should be prepared for further price swings in the days and weeks ahead.
