Wash Trading Dominates Bitcoin Volume, What Does This Mean For Price?

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. 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 ...