BTC trading data from about 160 cryptocurrency exchanges does not correspond to reality. More than 50% of the data on trading volumes on exchanges are fictitious.

Crypto Exchanges Exaggerate BTC Trading Volumes by at Least a Half

Forbes’ research revealed a discrepancy between real BTC trading volumes on cryptocurrency exchanges and the data they provide to users. 

After studying data on Bitcoin trading volumes at 157 crypto exchanges, Javier Pax, the study’s author and Forbes’ digital asset analyst, claims that there is a group of small crypto exchanges in the market whose trading volumes are overstated by almost 95%. According to the author, such exchanges operate “with little or no regulatory oversight.” At the same time, BTC trading volumes on exchanges such as Binance, MEXC Global, and Bybit were also below the reported volumes. However, these exchanges are more modest in their exaggerations and show data only twice as large as the real ones. 

As of June 14, 2022, the volume of BTC trading through cryptocurrency exchanges was $128 billion. But official data from the segment’s representatives put the figure at $262 billion. Thus, about 51% of BTC volume data on exchanges is fictitious.

Pax says the main reasons for falsified data are: 

  • deliberate exaggeration of data by exchanges to attract customers;
  • whales’ manipulation of exchanges that open and immediately close trading positions, which only creates the appearance of increased demand.

According to CryptoRank research, about 1.3 million BTC are stored in crypto exchange accounts, which is approximately 6.2% of all BTC in the market. Meanwhile, the total turnover of top-tier crypto exchanges was about $1.5 trillion in early 2022, which is about 96% of the crypto trading volume.

Author: Ana Bustos García
#Bitcoin #Cryptocurrency #Exchange #News #Trading