Fake Bitcoin Trading Volumes and Bitcoin Predictions
The young crypto is yet to come of age, and while it prepares to do so, it will be marred by cases of manipulation, fraud, scams, etc. A recent study report shows that up to 95 percent of the reported average daily trading volume is fake. According to some industry experts, the bear market is coming to an end and the price of Bitcoin might even reach $100,000.
Study report: 95 percent of Bitcoin trading volume is a hoax
A report published by Bitwise this week casts more doubt on the legitimacy and credibility of Bitcoin. The CNBC reported on March 22 says that unregulated cryptocurrency exchanges are faking as much as 95 percent of Bitcoin spot trading.
The report reveals that cryptocurrency markets are still a favorable playground for manipulation.
Bitwise, an asset management company vying to become the first firm to list a Bitcoin exchange-traded fund (ETF), says that it recently met with the U.S. Securities and Exchange Commission (SEC) to discuss its application.
Bitwise Head of Global Research Mathew Hougan claims that the market is a mess because it thrives on manipulated data.
“People looked at cryptocurrency and said this market is a mess; that’s because they were looking at data that was manipulated,” said Hougan.
He added that “When you cut away the echo chamber of these nonsense numbers, it should be an efficient, well-arbitraged market.”
The analysis uncovered that out 71 of 81 exchanges engage in wash trading – buying and selling the same stock or digital assets multiple times in order to create an illusion of activity in the market. The report found that exchanges report an average daily trading volume of $6 billion when the true value is actually $273 million.
BitMEX CEO predicts Bitcoin will reach $10,000 in Q4 2019
BitMEX cryptocurrency trading platform CEO and co-founder Arthur Hayes has predicted that the price of Bitcoin will rally to $10,000 before the end of the year. He shared his forecasts in a Crypto Traders Digest newsletter published on March 22.
He further added the recovery will not take place until early Q4.
“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. […] $20,000 is the ultimate recovery,” said Hayes.
“However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000,” he added.
Hayes has a knack for making controversial predictions and some of them have been against community trends and sentiments. However, he has also made some good decisions and is credited for knowing when to go long or short.
ThinkMarkets analyst: Incoming bulls to push BTC price to $100,000
Bitcoin’s price has been in freefall since reaching a record high of nearly $20,000 in December 2017 and many are wondering if the popular digital asset will ever reach that feat again.
ThinkMarkets’ chief analyst Naeem Aslam believes that there is a high probability that the next bull run will see the price of Bitcoin surpass $100,000 and potentially reach $400,000. This is such a big claim considering that the market is beginning to find some sort of stability. However, anything is possible with Bitcoin, be it bullish or bearish trends.
The analyst further added that the protracted crypto winter is going to end. The winter has caused many firms to close shop while some speculative traders have lost interest in the market.
He noted in a blog post that there have been several battles between bulls and bears at the $4,000 mark but so far, the bears have the upper hand. He added that this level is critical for crypto traders.
Regarding the next bull, he said it may be as much as five times higher than Bitcoin’s all-time high reached more than a year ago.
“This is because there is a high chance that the next bull run has a minimum potential of pushing the price 5 times higher. That is over $100K,” he wrote in the blog post.
“I personally believe that each Bitcoin can go up as much as $400K and if history repeats itself, this number is not a fool’s paradise,” he added.