Bitwise’s new research reveals that the public and the Security and Exchange Commission perceptions are not right, and the Bitcoin market is just a representation of efficiency and order. Bitwise Asset Management would definitely not fold hands and watch the SEC delay ruling on its Bitcoin-ETF. Bitwise recently submitted a 104-page white-paper talking about the exact state of the market.
Luckily, you don’t have to read the whole thing because Bitcoinist read it and figured out the important bits.
Cryptocurrency News – Crypto Market is uncertain due to bad data
The market aggregators’ recent report on trading volumes is wrong and this is surprising, but Bitcoin cannot be blamed. CoinMarketCap and the crypto-community as a whole developed gradually from tools for early enthusiasts, and they do not indicate Bitcoin market’s state today.
Whenever we get to know that Bitcoin trades twice Apple’s daily volume or almost one-third of the daily volume of gold, then the data is surprising and incorrect. At the same time, the fact that CMC made a report of a spread across exchanges (from $170 to $5873) would be very surprising.
Is there any real volume?
The SEC asked this question after Bitwise submitted their recent research. With the use of screen-scraping and other methods, Bitwise was able to collect custom-data on 83 exchanges. Apart from the ten ‘true-volume’ exchanges, just three exchanges appeared to have significant volume; this includes OKex, HitBTC and Huobi.
Only Huobi appeared to have any correlation, after some comparisons from volume spike to genuine exchanges across trade size. Before the marched report showed up, the Huobi data had changed since.
What is the true state of the Bitcoin market?
Bitwise maintains the fact that after the fake volume and data are removed from the equation, there is an efficient and orderly market. Furthermore, it is more U.S focused than the suggestions from reported figures. More than 30% of real volume comes through the United States-based exchanges.