Bitwise: 95% of reported Bitcoin trading volume is artificially created by exchanges

posted 5 months ago
A majority of Bitcoin trading volume is artificially created by unregulated exchanges, according to a Bitwise Asset Management report cited by The Wall Street Journal. The firm looked at 81 crypto exchanges, looking for patterns that show real and artificial trading, concluding that 95% of the reported trading volume of these exchanges was questionable, including "patterns that indicated the trading on them appears manufactured."

"This report is the first time the data has been comprehensively assembled and analyzed to formally corroborate those anecdotal suspicions," according to Matthew Hougan, Bitwise’s head of global research. The firm also released a tool for users to track what it believes is the accurate Bitcoin trading volume.
Tags: bitcoin, blockchain, news