More Than 50% Of Bitcoin Trading Reported Was Fake: Forbes
- A new analysis conducted by Forbes confirms that almost 51% of the reported Bitcoin trading volume is “bogus” and fake.
- The biggest issues arise with those crypto exchanges that operate outside the regulatory oversight which include Binance, MEXC Global, and Bybit.
While the market slup has affected almost every crypto exchange, a new analysis conducted by Forbes confirms that almost 51% of the reported Bitcoin trading volume is ‘bogus’ and fake. This means that the maret could’ve been affected way worse than previously thought in 2022.
The world’s biggest cryptocurrency, Bitcoin (BTC), has been witnessing a rough patch recently and the crypto market is being increasingly viewed with great scrutiny. BTC represents almost 40% of the entire crypto space while Ethereum (ETH) represents almost 20%.
According to the Forbes report, the trading volume reported by crypto exchanges or e-brokerage reports are fake as the aim to maintain the suers’ turst in a bearish market. The liquidity issue in the crypto market is no joke and has taken down many major exchanges with it.
While the supporters of Bitcoin have a plethora of reasons for doing so, the critics of the leading cryptocurrency believe tha twash trading and poor regulatory authory over exchanges have resulted in manipulation of the market.
The Forbes study conducted a deep research and evaluated over157 crypto exchanges across the world to figure out the actual trading volume of the leading cryptocurrency across these exchanges and if they are liquid or just claim to be so.
“More than half of all reported trading volume is likely to be fake or non-economic. Forbes estimates the global daily bitcoin volume for the industry was $128 billion on June 14. That is 51% less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources,”said the report.
According to the report, Tether stablecoin remains the dominant player in the crypto economy as it has maintained a market capitalization of $68 billion. Meanwhile, 21 cryptocurrency exchanges generate over “$1 billion or more in daily trading activity, while the next 33 exchanges had volume between $200 million and $999 million across all contract types, spot, futures and perpetuals. “
Considering the spot price action of Bitcoin, the top position is shared by Binance, FTX, and OKX, while Chicago-based CME Group is the market leader in bitcoin futures trading.
Moreover, the biggest issues arise with those crypto exchanges that operate outside the regualtory oversight which include Binance, MEXC Global and Bybit. These are the largest cases of wrong trading volume being reported.
Altogether, the crypto exchanges operating out of regulatory oversight account for approximately $89 billion of the true volume while they claim $217 billion, revealed the Forbes report. Lastly, the report also revealed that 573 million people visit crypto exchange websites each month.