95% of Bitcoin Trading Volume reported on CoinMarketCap is & # 39; Fake & # 39 ;: Bitwise Report

A recent study by Bitwise Asset Management has revealed that so much as 95% of spotbitcoin (BTC) trading volume has been "faked" – as it is inaccurately reported by loosely regulated or completely unregulated crypto exchange rates.

1 / New research from us @BitwiseInvest . [19659004] As part of the 226 slides presented to the SEC on our ETF filing, we made an initial analysis of * order book data * from all 81[ads1] exchanges reporting> $ 1M in BTC volume to CMC.

TLDR: 95% of reported volume is false, but many good news! pic.twitter.com/TuXLlDCRyP

– Bitwise (@BitwiseInvest) March 22, 2019

Founded in 2017, Bitwise Asset Management is a privately held, San Francisco-based crypto research company that also works as a "reliable partner for individuals, asset managers, family offices, investment managers and institutions" in making business decisions in the digital activity industry.

Just $ 273 million in Bitcoin Spot Trading Volume

In its extensive report, the Bitwise research team reported on the world's top 81 trading volume encryption exchanges, and found that economic data reported by CoinMarketCap (CMC), a leading cryptodata provider, had been artificially inflated. Researchers at Bitwise claim that CMC had reported a total of $ 6 billion in average daily trading volume. However, the results of a study undertaken thereon showed that only $ 273 million of CMC's reported BTC trading volume was "legitimate."

Commented on the allegedly inaccurate data, Matthew Hougan, global leader of Bitwise's research department, said: [[19659011] People looked at cryptocurrency and said this market is a mess; It was because they looked at data that was manipulated.

In its detailed survey, which was compiled and sent to the US Securities and Exchange Commission (SEC), Bitwise discovered that most of the BTC's reported spot volume is false and that listing fees is probably the motive behind it, as they can reach millions . The real spot volume was found to be $ 270 million, and 10 encryption exchanges make up almost all that volume. Most of these are regulated trading platforms for cryptocurrency.

According to Bitwise's management, the crypto research company "performed an initial order book data analysis" from all 81 digital asset exchanges that report Bitcoin trading volumes of more than $ 1 million per day on CMC.

Arbitrage between 10 "real exchanges" has "greatly improved"

As mentioned, Bitwise noted that "total daily [bitcoin] spot volume" is estimated at about $ 270 million – which is "95% less than reported" by CMC. Moreover, the Bitwise team pointed out that only 10 digital real estate exchanges have Bitcoin trading volumes of over $ 1 million per day. These include Binance, Coinbase, Kraken, BitFlyer, ItBit, Bittrex, Poloniex, Bitfinex, Bitstamp, Gemini and Circle Pay.

To confirm Bitwise's reported figures, the crypto research company wrote that users can check information posted on bitcointradevolume .com. Continuing to report some good news, Bitwise revealed via his official Twitter account:

Arbitrage between the 10 real exchanges has improved significantly. Avg the price deviation of a single exchange from the total price is now less than 0.10%! Well below the arbitrage band, exchange rate estimates (0.10-0.30%) and hedging costs are considered.