{"id":505158,"date":"2022-10-06T23:00:41","date_gmt":"2022-10-06T23:00:41","guid":{"rendered":"https:\/\/wncen.com\/?p=505158"},"modified":"2024-06-11T14:27:08","modified_gmt":"2024-06-11T14:27:08","slug":"wash-trading-dominates-bitcoin-volume-what-does-this-mean-for-price","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/wash-trading-dominates-bitcoin-volume-what-does-this-mean-for-price\/","title":{"rendered":"Wash Trading Dominates Bitcoin Volume, What Does This Mean For Price?"},"content":{"rendered":"

The daily bitcoin trading volumes come out into billions of dollars every day, with hundreds of thousands of daily transactions being carried out. It is one of the reasons why bitcoin draws the most investors, given such high trading volume and good depth across all exchanges. However, some on-chain analyzers have been diving into the blockchain to explore the daily BTC volume, and the findings of this study have been alarming.<\/p>\n

More Than 50% Fake Volume<\/h2>\n

Mostly, in the present market, there is always some amount of volume for digital assets that are actually fake. These fake trading volumes are to make a digital asset look better than they actually do to make other investors put money into them. Smaller-cap altcoins are usually guilty of this to a large extent, but it seems the largest cryptocurrency by market cap is not left out of this.\u00a0<\/span><\/p>\n

Related Reading: Bitcoin Shocker: Lightning Network Capacity Reaches 5,000 BTC<\/a><\/strong><\/em><\/div>\n

Bankless Times carried out a study<\/a> into the daily bitcoin volume for the year 2022 and found that the majority of the volume was actually fake. The study showed that 51% of bitcoin volume across various exchanges was actually a result of wash trading.<\/p>\n

\"Bitcoin<\/p>\n

BTC maintains above $20,200 | Source: BTCUSD on TradingView.com<\/a><\/pre>\n

For those who do not know, the act of wash trading an asset is illegal because it creates a false narrative about that asset to make investors put their money into it. This way, they are trapped, and the wash traders walk off with millions of dollars in profit, depending on how large the scheme is.<\/p>\n

The study unveiled that stablecoins were actually contributing largely to this wash trading volume. This means that the digital asset is seeing up to $10-$15 billion in fake volume across exchanges, giving rise to concerns about how this affects the cryptocurrency.<\/p>\n

Impact On Bitcoin Price<\/h2>\n

To the unsuspecting eye, there might be no manipulation going on when it comes to the price of bitcoin, but this report from Bankless Times actually shows that the digital asset is being largely manipulated. Wash trading can easily affect the price of a digital asset by making it look like a profitable investment.\u00a0<\/span><\/p>\n

Related Reading: Regulatory Scrutiny Threatens Ethereum\u2019s Rise, Will It Succumb Under Pressure?<\/a><\/strong><\/em><\/div>\n

So say bitcoin is being wash traded across multiple exchanges; it deceives investors to believe that there is a large demand for the asset, leading them to purchase it. Thereby raising the digital asset of the cryptocurrency in the process.<\/p>\n

With such a large volume of trading volume reportedly being fake, it begs the question of if the current BTC price is actually accurate. A real volume of less than 50% of reported volumes would put the digital asset\u2019s value at around $12,000, if true.<\/p>\n

Featured image from Forbes, chart from TradingView.com<\/pre>\n

Follow <\/i><\/b>Best Owie on Twitter<\/i><\/b><\/a> for market insights, updates, and the occasional funny tweet\u2026<\/i><\/b><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The daily bitcoin trading volumes come out into billions of dollars every day, with hundreds of thousands of daily transactions being carried out. It is one of the reasons why bitcoin draws the most investors, given such high trading volume and good depth across all exchanges. However, some on-chain analyzers have been diving into the blockchain to explore the daily BTC volume, and the findings of this study have been alarming. More Than 50% Fake Volume Mostly, in the present market, there is always some amount of volume for digital assets that are actually fake. These fake trading volumes are to make a digital asset look better than they actually do to make other investors put money into them. Smaller-cap altcoins are usually guilty of this to a large extent, but it seems the largest cryptocurrency by market cap is not left out of this.\u00a0 Related Reading: Bitcoin Shocker: Lightning Network Capacity Reaches 5,000 BTC Bankless Times carried out a study into the daily bitcoin volume for the year 2022 and found that the majority of the volume was actually fake. The study showed that 51% of bitcoin volume across various exchanges was actually a result of wash trading. BTC maintains above $20,200 | Source: BTCUSD on TradingView.com For those who do not know, the act of wash trading an asset is illegal because it creates a false narrative about that asset to make investors put their money into it. This way, they are trapped, and the wash traders walk off with millions of dollars in profit, depending on how large the scheme is. The study unveiled that stablecoins were actually contributing largely to this wash trading volume. This means that the digital asset is seeing up to $10-$15 billion in fake volume across exchanges, giving rise to concerns about how this affects the cryptocurrency. Impact On Bitcoin Price To the unsuspecting eye, there might be no manipulation going on when it comes to the price of bitcoin, but this report from Bankless Times actually shows that the digital asset is being largely manipulated. Wash trading can easily affect the price of a digital asset by making it look like a profitable investment.\u00a0 Related Reading: Regulatory Scrutiny Threatens Ethereum\u2019s Rise, Will It Succumb Under Pressure? So say bitcoin is being wash traded across multiple exchanges; it deceives investors to believe that there is a large demand for the asset, leading them to purchase it. Thereby raising the digital asset of the cryptocurrency in the process. With such a large volume of trading volume reportedly being fake, it begs the question of if the current BTC price is actually accurate. A real volume of less than 50% of reported volumes would put the digital asset\u2019s value at around $12,000, if true. Featured image from Forbes, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet\u2026<\/p>\n","protected":false},"author":541,"featured_media":505173,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[428,7301,679,5351,87126,1119,1144,78790,14557],"class_list":["post-505158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-bitcoin-exchange-volume","tag-bitcoin-price","tag-bitcoin-volume","tag-bitcoin-wash-trading","tag-btc","tag-btcusd","tag-btcusdt","tag-wash-trading"],"acf":[],"yoast_head":"\nWash Trading Dominates Bitcoin Volume, What Does This Mean For Price?<\/title>\n<meta name=\"description\" content=\"The daily bitcoin trading volumes come out into billions of dollars every day, with hundreds of thousands of daily transactions being carried out. 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This has seen Best dive into topics in areas such as decentralized finance (DeFi), non-fungible tokens (NFTs), Layer 2 blockchains, etc. In addition to this, Best is a vocal member of the crypto community across various social media platforms such as X and Reddit. Best\u2019s work garners tens of thousands of readers monthly, who rely on the information in these publications to keep up-to-date with everything happening in the crypto community. Best\u2019s articles explore breaking news, intricate systems such as yield farming, liquidity pools, and other decentralized finance (DeFi) systems. This is because Best understands the importance of information to gaining financial freedom and believes that everyone should have access to this information. Best also believes in leveraging the blockchain for philanthropy to create the most positive social impact. This involves work with charitable organizations focused on financial literacy and education. With each article, Best lends a voice to important issues such as a more financially inclusive future, transparent systems for growth and development, and technology that is not self-serving but one that serves all of humanity. When not curating engaging content, Best can be found reading a book with a cup of hot chocolate, enjoying a Netflix series, or exploring the outdoors with Green - the world\u2019s most quiet and well-behaved Husky. Best\u2019s interests also span other industries such as art, finance, and security, attending seminars and conferences in not just the crypto industry but other industries as well. As an animal lover, Best is also involved with charities for animals, local shelters, and rescues. Best is also involved in local events that promote inclusivity, such as being a prominent member of hiking clubs and a cycling club, as well as being a part of a very happy group of animal lovers. Best is a true professional in every sense of the word, with an exceptional dedication to producing high-quality work. This shines through in Best's work on and off the clock. These include advocating for inclusive crypto education for all, the impact of financial illiteracy, and the benefits of adopting new technologies such as cryptocurrencies. Best\u2019s prolific career in the media industry is a testament of how hard work and dedication pays.","sameAs":["https:\/\/www.linkedin.com\/in\/best-owie-41a150178\/","https:\/\/x.com\/https:\/\/twitter.com\/BestOwie"],"url":"https:\/\/wncen.com\/author\/owiebest\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Wash Trading Dominates Bitcoin Volume, What Does This Mean For Price?","url":"http:\/\/wncen.com\/news\/wash-trading-dominates-bitcoin-volume-what-does-this-mean-for-price\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/wncen.com\/news\/wash-trading-dominates-bitcoin-volume-what-does-this-mean-for-price\/"},"thumbnailUrl":"https:\/\/wncen.com\/wp-content\/uploads\/2022\/10\/bitcoin-volume.jpeg?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/wncen.com\/wp-content\/uploads\/2022\/10\/bitcoin-volume.jpeg?fit=960%2C640"},"articleSection":"Cryptocurrency Market News","author":[{"@type":"Person","name":"Best Owie"}],"creator":["Best Owie"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/wncen.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin","bitcoin exchange volume","bitcoin price","bitcoin volume","bitcoin wash trading","btc","btcusd","btcusdt","wash trading"],"dateCreated":"2022-10-06T23:00:41Z","datePublished":"2022-10-06T23:00:41Z","dateModified":"2024-06-11T14:27:08Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Wash Trading Dominates Bitcoin Volume, What Does This Mean For Price?\",\"url\":\"http:\\\/\\\/wncen.com\\\/news\\\/wash-trading-dominates-bitcoin-volume-what-does-this-mean-for-price\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/wncen.com\\\/news\\\/wash-trading-dominates-bitcoin-volume-what-does-this-mean-for-price\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/bitcoin-volume.jpeg?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2022\\\/10\\\/bitcoin-volume.jpeg?fit=960%2C640\"},\"articleSection\":\"Cryptocurrency Market News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Best Owie\"}],\"creator\":[\"Best Owie\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin\",\"bitcoin exchange volume\",\"bitcoin price\",\"bitcoin volume\",\"bitcoin wash trading\",\"btc\",\"btcusd\",\"btcusdt\",\"wash trading\"],\"dateCreated\":\"2022-10-06T23:00:41Z\",\"datePublished\":\"2022-10-06T23:00:41Z\",\"dateModified\":\"2024-06-11T14:27:08Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/wncen.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/wncen.com\/wp-content\/uploads\/2022\/10\/bitcoin-volume.jpeg?fit=960%2C640","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/505158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/users\/541"}],"replies":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/comments?post=505158"}],"version-history":[{"count":0,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/505158\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media\/505173"}],"wp:attachment":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media?parent=505158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/categories?post=505158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/tags?post=505158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}