More than half of all Bitcoin daily trading volumes are reportedly fake, as the world’s largest cryptocurrency nosedives again amid global economic turmoil.
According to a Forbes analysis of 157 crypto exchanges and trading platforms, more than half (51 per cent) of all reported trading volume is likely to be fake or non-economic.
“We estimate the global daily bitcoin volume for the industry was $128 billion on June 14. That is 51 per cent less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources,” the report mentioned.
Bitcoin represents 40 per cent of the $1 trillion global crypto market.
According to the report, there is no genuine method of calculating bitcoin daily volume, “even among the industry’s most reputable research firms”.
“For example, CoinMarketCap puts the latest 24-hour trading of bitcoin at $32 billion, CoinGecko at $27 billion, Nomics at $57 billion and Messari at $5 billion,” the report revealed.
In terms of how much Bitcoin activity takes place, 21 crypto exchanges generate $1 billion or more in daily trading activity, while the next 33 exchanges had volume between $200 million and $999 million.
Binance is the leader with a 27 per cent market share, followed by FTX. Chicago-based CME Group is the market leader in bitcoin futures trading.
After showing some stabilisation in the last few weeks, world’s largest cryptocurrency Bitcoin has plunged once again below $20,000 after Federal Reserve Chair Jerome Powell’s keynote address.
Bitcoin prices had stabilised around the $23,000 to $24,000 level after plunging below $20,000 in June.