Bitwise: Nearly 95% of Bitcoin Trading
Bitcoin scandals continue, and the latest report says that nearly 95% of bitcoin transactions may be created by unregulated virtual currency exchanges, adding to the doubts about the virtual currency market.
The Wall Street Journal reported that the Bitwise Asset Management report announced that it analyzed 81 virtual currency exchanges and the four-day trading situation in March. The conclusion was that 71 out of 81 exchanges, or about 95% of the traders, reported volume of transactions. problem. The pattern shows that trading activity seems to be fake.
This report analyzes transaction data and looks for ways to distinguish between true and false trading. They found that regulated exchanges such as Coinbase, Gemini, BitFlyer, etc., have a fixed pattern of transactions. For example, buying and selling activities will increase during working hours, bedtime will fall, and small transactions will be more than large transactions, and the amount of orders will be mostly integers. But unregulated exchanges are very different in mode, such as the pairing of purchase and sale orders, the transaction price is almost between the bid and ask prices, and there are very few small or integer transactions. During the analysis period, the daily Bitcoin filing volume was $6 billion, but Bitwise estimated that only $273 million in transactions were justified.
The Bitwise report was submitted to the Securities and Exchange Commission (SEC) to apply for the issuance of Bitcoin tracking ETFs, hoping to reduce investor concerns about fraud and market manipulation. Matthew Hougan, head of global research at Bitwise, said that if approved, the ET F would only track 5% of the transactions they thought were legal. These trading activities come from 10 regulated exchanges, transaction data can be certified, and customers are real. Prior to this, the Crypto Integrity study stated that 88% of the February coin transactions were flooded. Another agency, TIE, said that some form of suspicious activity occurred on 75% of exchanges.