/ latest / 2019/03/95-of-bitcoin-trading-volume-reported-on-coin-market schema-is-false-bit-wise report /
A recent study by Bitwise Asset Management has revealed that much as 95% of spot bitcoin (BTC) trading volume has been "faked" – as it is mistakenly reported by loosely regulated or completely unregulated crypto swapping switches.
1 / New research from us @BitwiseInvest .  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 81exchanges that reported> $ 1M in BTC volume on CMC.
TLDR: 95% of reported volume is false, but lots of good news! pic.twitter.com/TuXLlDCRyP
– Bitwise (@BitwiseInvest) March 22, 2019
Founded in 2017, Bitwise Asset Management is a privately owned, San Francisco-based crypto research company that also serves as a "trusted partner to individuals, asset managers, family offices, investment managers and institutions" in the context of business-related digital asset industry decisions.
Only $ 273 million in Bitcoin Spot Trading Volume
In its extensive reporting team at Bitwise the world's top 81 trading volume cryptographic exchanges, and found that economic data reported by CoinMarketCap (CMC) is a leading crypto data 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 commissioned by it showed that only $ 273 million of CMC's reported BTC trading volume was "legitimate".
Based on the allegedly inaccurate data, Matthew Hougan, world chief of Bitwise's research department noted:  People looked at cryptocurrency and said that this market is a mess; It was because they looked at data that was manipulated.
In its detailed study, which was drafted and sent to the US Securities and Exchange Commission (SEC), Bitwise found that the majority of 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 turned out to be $ 270 million, and 10 cryptographic exchanges account for almost the entire volume. Most of these are regulated trading platforms for cryptocurrency.
According to Bitwise & # 39; s management, the crypto research company performed "an initial analysis of order book data" from all 81 digital activity exchanges that reported Bitcoin trading volumes of more than $ 1 million a day on CMC. Arbitrage between 10 "real exchanges" is "significantly improved"
As mentioned, Bitwise noted that "the total daily [bitcoin] spot volume" is estimated to be about $ 270 million – which is "95% less than reported "by CMC. In addition, Bitwise's team pointed out that only 10 digital asset swaps have Bitcoin trading volumes of over $ 1 million a day. These include Binance, Coinbase, Kraken, BitFlyer, ItBit, Bittrex, Poloniex, Bitfinex, Bitstamp, Gemini and Circle Pay.
To confirm Bitwise's reported figures, the writer research firm wrote that users can check information submitted on bitcointradevolume .com. Continue 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 for a single exchange from the total price is now less than 0.10%! Far below the arbitrage band, exchange rates (0.10-0.30%) and cover costs are considered.