Forbes have analysed 157 exchanges and found that Bitcoin trading volume might not be as high as companies claim, especially if the exchanges are small or unregulated.
According to reports, the data on Bitcoin trading from 157 exchanges did not correspond with what companies claimed.
An Aug. 26 Forbes report stated that Javier Pax, the digital asset arm of Forbes, said there was an inconsistency between the Bitcoin ( BTC ) trading data reported by crypto-exchanges and the actual numbers. Forbes contributor discovered that BTC trading volumes were roughly 95% lower than reported.
However, those operating with little or no regulatory oversight — such as Binance and Bybit – claimed to have more than twice the volume: \$217 billion instead of \$89 billion.
Pax stated that “more than half of all trading volume reported is likely to be false or non-economic.” On June 14, the global daily Bitcoin volume was \$128 billion. This is 51% lower than the $262 Billion one could get if you combine the self-reported volume of multiple sources.
Trading volume metric not trustworthy
“If the reported trading volumes of Bitcoin, the most closely-regulated and monitored crypto asset, are not trustworthy, then metrics for smaller assets should be taken very seriously. Trading volume, at its best, is one of the most important indicators of investor interest. However, novice investors can easily manipulate it to make it appear that there is more demand.”
Pax referenced a 2019 Bitwise Asset Management report that claimed 95% was faked crypto trading volume on unregulated platforms. Chainalysis’ February report suggested that wash trading was becoming an issue for nonfungible token investors. However, the majority of crypto trading volume reported on unregulated exchanges was not profitable.