95% Of Reported Bitcoin Trading Volume Is Fake, Says Bitwise
While many use CoinMarketCap as a go-to resource for cryptocurrency market data, roughly 95% of bitcoin trading volume reported by this website is fake, according to Bitwise Asset Management report.
When conducting its analysis, Bitwise pulled data from 81 exchanges, which it selected based on reported bitcoin trading volume. Exchanges that reported less than $1 million worth of volume per day were excluded.
"IF true, it's clearly not a positive for the industry," emphasized Tim Enneking, managing director of Digital Capital Management. However, "most of the largest exchanges appear to have a much lower level of 'fake' volume, so the 95% number is hardly evenly spread across exchanges," he noted.
Of the 81 exchanges evaluated in the report, only 10 provide volume figures that are legitimate, according to Bitwise.