In the past, bitcoin trading volumes have consistently exceeded expectations. As the bitcoin network had seen $1 trillion worth of transactions, the community was filled with joy. A new report suggests that exchanges might have overestimated trading volumes. They predict that the main number will be lower than reported daily, particularly in relation to trading volumes.
Reported Bitcoin Volume Fake
A new analysis report from Forbes has come back with the conclusion that more than half of bitcoin’s daily reported volumes are fake. Reporting volumes across 157 crypto-exchanges was examined. The numbers were inflated by self-reported sources.
This is because exchanges report daily bitcoin volume according to internal processes. However, this can lead to different results across exchanges. The report highlighted the difference between CoinMarketCap (and CoinGecko). The former reported daily BTC volume of $32 Billion, while CoinMarketCap reported $27 Billion in trading volume during the same period. Nomics had estimated the volume to be $57 billion while Messari reported $5 billion.
BTC gains more than $20,000| Source: BTCUSD on TradingView.com
This disparity is also observed across all analytics platforms. Today, Glassnode reportsThe total net bitcoin flows in the last week were $7.8 billion. Taking a look at data from IntoTheBlock shows that the bitcoin trading volume for the last seven days is $6.71 billion.
What’s The Real Number?
Forbes investigated the bitcoin trading volume daily reported by Forbes and found that 51% of it is false. It also gave its own predicted volume saying, “We estimate the global daily bitcoin volume for the industry was $128 billion on June 14. That is% less than the $262 billion one would get by taking the sum of self-reported volume from multiple sources.”
CoinMarketCap, CoinGecko and other sites continue to have discrepancies. CoinMarketCap has reported that BTC trades on a daily basis totaling just under $28 billion at the time this article was written. CoinGecko displays that there is a $25.17 trillion daily trading volume, which amounts to a difference of about $3 billion.
It is similar with bitcoin’s price on different websites. For CoinMarketCap, BTC’s price is reported at $19,909, while CoinGecko shows a lower price of $19,852. Forbes says that there is no way to accurately determine daily bitcoin volume, despite their reputations.
Featured image taken from Business Today. Chart by TradingView.com
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