Over 100,000,000,000 In Volume

[bryant.coleman]

The market seemingly has over 100 Billion in volume and growing as of today, do you think this is a good or bad thing for the economy and where is the market headed to next? Speculations and thoughts?

I am not sure how much of this is fake volume (a number of Chinese exchanges are very infamous for inflating their trade volumes) and how much is automated by the bots. The real volume may be just a fraction of this number. And also, the figure we had one week ago was probably an outlier. I have checked the 24 hour trade volume in coinmarketcap, and it is showing a figure of around $50 billion for all the cryptos, and $16.6 billion for Bitcoin alone. One interesting thing that I have noticed is that Tether is now having a higher trade volume ($17.3 billion) when compared to Bitcoin.

And this raises a few uncomfortable questions as well. How can a currency with a market cap of $4 billion have a 24-hour trade volume of $17 billion?

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[odolvlobo]

Keep in mind that 99% of that volume is fake (as a rule of thumb).

BTW, here are the sources. The first reports 88% as fake and the second reports 95% as fake. I'll admit that 99% is an exaggeration, but I like to play it safe.

https://medium.com/crypto-integrity/fake-volumes-in-cryptocurrency-markets-february-report-fec9329f1f98
https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca201901-5164833-183434.pdf

This is also a good read: https://hedgetrade.com/bitwise-exchange-report-raises-questions/

[Twinkledoe]

Keep in mind that 99% of that volume is fake (as a rule of thumb).

BTW, here are the sources. The first reports 88% as fake and the second reports 95% as fake. I'll admit that 99% is an exaggeration, but I like to play it safe.

https://medium.com/crypto-integrity/fake-volumes-in-cryptocurrency-markets-february-report-fec9329f1f98
https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca201901-5164833-183434.pdf

This is also a good read: https://hedgetrade.com/bitwise-exchange-report-raises-questions/

So we are not really looking at 100B in volume here. For sure, more than half is really fake because of wash trading that is rampant in every exchange. We can't tell the exact figures but we know that crypto market is growing. We just don't know the real numbers in play.

[mrquackquack]

Any chance Bitcoin will eclipse the 11k price point in the near future?

[babysweetTiger0401]

The market seemingly has over 100 Billion in volume and growing as of today, do you think this is a good or bad thing for the economy and where is the market headed to next? Speculations and thoughts?

Most of the time if the total supply of the coins is 1 billion token or more, usually their price has no chances for them to increase higher as everyone expecting it. Unlike the total supply is limited only like Bitcoin, NRG, and etc. Or sometimes it depends on the activity they have for the coins in the market.

[Bitcoin Seller]

Any chance Bitcoin will eclipse the 11k price point in the near future?

I would not even start to worry about it. Yes, for sure, it will happen. I am expecting for the fast run of BTC this year. Suppose, when autumn comes, people will become more active as, expecting for a traditional rise of the market close to December, they will start investing in Bitcoin more.
Probably, even the dominance of the mail cryptocurrency will reach 70-72% at this time.

[Febo]

The market seemingly has over 100 Billion in volume and growing as of today, do you think this is a good or bad thing for the economy and where is the market headed to next? Speculations and thoughts?

Most of volume on exchanges is fake. Exchanges wants to look legit and they wash trade to attract more traders. Coin issuers, want that their coin looks liquid and they wash trade it to attract more people buy it as an investment.

[RealMalatesta]

Any chance Bitcoin will eclipse the 11k price point in the near future?

I would not even start to worry about it. Yes, for sure, it will happen. I am expecting for the fast run of BTC this year. Suppose, when autumn comes, people will become more active as, expecting for a traditional rise of the market close to December, they will start investing in Bitcoin more.
Probably, even the dominance of the mail cryptocurrency will reach 70-72% at this time.

The fact that bitcoin rose December 2017 does not mean that is the pattern that it will always follow because I think that is the more reason why people has been picking on that, but let’s look a December 2018, why didn’t the price of bitcoin rise then? On my own personal opinion, I even feel that the period of December is when the market will not move because many people will want to use their fiat to celebrate the season then, which is the season of Christian, except the Islam brother among us that will be putting money.

I think that this mentality of December is quite wrong, bitcoin could rise at any time, it could even be this night, tomorrow, next or anytime that we have any news or any big investor decides to put large amount of money into the market.

[davinchi]

11K is nothing too serious to pass anyway, I mean we can be 11k tomorrow and 9k the next day and 11k again right after that and nothing would change, those are easily achievable numbers if you ask me. However, if you are looking into more about the volume deal I am pretty sure you have to actually make a decent amount of volume to even consider only a slight part of it real.

Looking at the numbers above we have between 88% to 95% as fake volume and lets be more optimistic about this and say between 80-90% is wrong that means only 10 to 20 billion dollars of the volume is real and between 10-20 there is a big difference but even than we have at most 20 billion volume. That is not really that huge, a lot of volatility comes from that kind of low volume because people who have a lot of money can do one huge move and because we lack volume to keep them in check the price moves wildly.

[DmitFomin]

Keep in mind that 99% of that volume is fake (as a rule of thumb).

Lots of people being blinded by numbers and easily believe on what they are seeing everytime.Later on with further research
they would completely agree into this line.Everything is fake,there might be some volume but we wont see these big numbers.

You are right, “people see what they want to see,” so many people look at the statistics of coinmarketcap and think that these are real volumes of trade. But those who have ever traded on exchanges and have been using cryptocurrencies for a long time know that most exchangers create the appearance of trading and artificially inflate trading volumes in order to take a higher place in the rating and sell their services more expensive. By the way, it must be said that over-the-counter trading has much larger volumes and are not artificially high.

[omonuyak]

I would not say 99% of them are fake, but I do believe that some volume aren't real. Look at P2PB (CMIIW) and another exchange like that. Almost all of their volume are fake, but there's not that many crazy exchange out there.

Look at the top 10 exchange based on user visits, that should give better insight about market volume instead of CMC.

The volume at the coinmarketcap are most time not real because many manipulators do manipulate their coin/tokens' volume in other to show it in coinmarketcap.
The volume we see in exchanges sometimes is also manipulated and the best thing to do is to trade base on insight instead of depending on those volume.

[DTalk]

I would not say 99% of them are fake, but I do believe that some volume aren't real. Look at P2PB (CMIIW) and another exchange like that. Almost all of their volume are fake, but there's not that many crazy exchange out there.

Look at the top 10 exchange based on user visits, that should give better insight about market volume instead of CMC.

Even the top exchanges volumes are fake as well. Most exchanges do trade by themselves for 2 reasons, to make money against their users or to have bigger volume. Not 99% are fake, but it will not be less than 60-70%, I follow some trading pattern in most exchanges and all of these looks like fake, fishy.
Since there's no realtime data tracking system (public) for every trades, it's easy to manipulate a market. Exchanges are doing that because they hold one of the biggest bag (whale).

[TIDOVEE]

it is not always true,often time most of those values are hyped to attract traders and wanting to gain attention and position in the coin market. probably most of them make a overtargeted volume of hard cap,but when they unfortunately could not meet up it becomes an issue against fair distribution. some are moderate and real 

[fullhdpixel]

There are so many places that also suggest doing volume by the coin owner themselves. I have been part of one, the exchange says there is a minimum volume requirement and they give you this software where you put your API and so forth in and you put some btc and the coin you want in and you just let it work 24 hours, you tell it to make whatever volume you want (ours was over 200 bitcoin a day) and it does it constantly, it doesn't change the price much, it just moves between the spread and sells and buys to itself so it doesn't lose money except the fee but aside from that it works perfectly.

Now, think about how much of that goes around in all exchanges, all these new coins are doing volume all by themselves, there are millions of dollars (over 50+ million I am 100% sure) for basically nothing every single day.

[barbara44]

it is not always true,often time most of those values are hyped to attract traders and wanting to gain attention and position in the coin market. probably most of them make a overtargeted volume of hard cap,but when they unfortunately could not meet up it becomes an issue against fair distribution. some are moderate and real 

This is why we see many of those exchanges and projects falling because they live more of fake lives by lying a lot, and even to their whitepaper., they lie so much to make people believe in their project which they eventually are not able to meet up, after which they die down. Most of those volumes that you see are actually not accurate like you said, and many people knows this, they do that to tie people’s investment and trade down unnecessarily.

I know that many of these exchanges that we have seen has used those styles in one way, but that was when ICO was still ICO, there were so many trader and investors then looking for trading platform, so it does not take that long for them to build a genuine users, but now, where we have so many competitors with low investors or users,  those fake volume would not work again.

[auntyjmary]

In economic terms, high volumes of any commodity or asset such as in the case of cryptocurrencies would have been a positive sign of growth. Unfortunately, here is the case where many exchanges strive on hype and provide fake volumes in order to attract more traders on their platform.

[Saisher]

The market seemingly has over 100 Billion in volume and growing as of today, do you think this is a good or bad thing for the economy and where is the market headed to next? Speculations and thoughts?

Of course, this is good, the market is showing a positive sign, this is all that we wanted, it just shows the market is growing many people are turning to Bitcoin and converting their fiat to Bitcoin and other Cryptocurrency, there are a lot of programs being created dedicated to Cryptocurrency and accepts cryptocurrency as payment.