Cryptocurrency Exchanges May Be Inflating 88% Of Total Daily Volume According To Research

For some months now, the major Bitcoin transaction tracker, CoinMarketCap, has been reporting higher highs for the global trading volume. CoinMarketCapital’s list of crypto exchange per volume has reflected a steady increase in the daily transaction volumes of cryptocurrencies. However, researchers say that almost all the top cryptocurrencies exchanges per volume may be inflating their daily trading volume. If this is true, another bear run will be unavoidable.

Crypto Exchange Per Volume: Are Exchanges Manipulating The Trading Volumes?

Almost throughout the last few months of 2018, top cryptocurrency exchanges per volume recorded a $10 billion drop in daily volume in many cases. However, since the last dramatic bear wave in the market that happened right after the Bitcoin Cash fork war, the trading volume has been going higher and higher.

Bitcoin (BTC) Price Today – BTC / USD

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Last month, all the cryptocurrency exchanges per volume recorded a total volume of $25 billion daily. This made up about 20% of the total cryptocurrency market value. The last time the digital assets industry experienced this kind of activity was in the early months of 2018 thanks to the hype of the bull run and bear reversal.

The new research, which was conducted by Crypto Integrity, insists that the Bitcoin transaction tracker is reporting inflated trading volumes. If this doesn’t end soon, according to the report, the price of BTC is going to suffer significantly against the USD. The researchers claim that the top crypto exchange per volume, Binance along with BitMAX and just a few other exchanges were not manipulating their trading volumes. However, Huobi, OkEX, Bit-Z, HitBTC, and many other unregulated exchanges are reportedly manipulating their trading volume. In an interview with Decrypt, a member of the research team said:

“[We built] a system that collects low-level market data from exchanges (order books as well as trades). It allows us to identify what no one is able to find on charts or by the analysis of trades & volumes.”

Bitcoin Price Prediction 2019: What Does This Volume Manipulation Mean For Bitcoin?

Trading volumes tend to support price significantly. This is why volume and price volatility are often correlated. If the researchers are correct, the price of Bitcoin may be positioned for a significant fall against the USD. As expected, other cryptocurrencies will follow. In a Bitcoin price prediction 2019, Crypto Dog, a well-known analyst, said that the current trading volume ought to have pushed Bitcoin into a bull rally.

Financial Survivalism also agreed with Crypto Dog arguing that the current trading volumes are the highest the industry has seen since the last week of 2017. He suggested that if these volumes are fake, the price of BTC may fall as low as $2,000 soon. This would be heart wrecking to everyone who has been expecting a cryptocurrency bull run that would be fueled by Bitcoin and supported by trading volume.

For now, it’s not clear if the Bitcoin transaction tracker is reporting wrong information from any crypto exchange by volume. Time will tell which Bitcoin price prediction 2019 will come to pass. Holders are praying for a bull run to come soon so they can cash out and make some profit. The last thing anyone needs is a bear run ahead of the upcoming Bitcoin halving.

What do you think? Which Bitcoin price prediction 2019 will become a reality? Will the prices rise or fall? Comment below.

Max writes about blockchain projects and regulation with a special focus on United States and China. He joined Smarterum after years of writing for various media outlets.


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