In the field of digital currency, Bitcoin has always been the focus of much attention. However, a recent study pointed out that the average daily transaction volume of Bitcoin in the entire network is as high as 600 million US dollars, but as much as 95% of the transaction volume is fake. What truth is hidden behind this astonishing figure? Let us unveil this mystery together.

 The truth behind the transaction

As a representative of cryptocurrency, Bitcoin's trading activities have always attracted much attention. However, with the continuous development of the market, some lawless elements began to use trading platforms to conduct false transactions to exaggerate trading volume and manipulate market prices. It is reported that these false transactions are often achieved by manipulating trading robots or human intervention, thereby misleading investors and affecting market stability.

 The data support behind it

According to the latest research data, the average daily transaction volume of Bitcoin in the entire network is as high as 600 million US dollars, but as much as 95% of the transaction volume is fake, which is a shocking figure. These false transactions not only distort the real situation of the market, but also bring huge risks to investors. Investors often judge market heat and trends based on trading volume, and when most of the trading volume is false, investment decisions are likely to be misled and lead to losses.

 The harm of market manipulation

False transactions not only affect the fairness and transparency of the market, but also cast a shadow on the entire digital currency industry. Once the market is manipulated, investor confidence will be severely hit, causing the market to lose vitality and may even trigger a vicious cycle. Therefore, regulators and trading platforms need to strengthen supervision, crack down on false trading behaviors, and maintain market order and investor interests.

 Investor vigilance

For ordinary investors, facing the challenge of false transactions, they need to remain vigilant and rational. When choosing trading platforms and investment products, they should choose carefully and avoid blindly following the trend and speculative behavior. At the same time, investors can also obtain information through multiple channels, understand market dynamics, and reduce the impact of false transactions on investment decisions.

 Future Outlook

With the continuous development of the digital currency market, the problem of false transactions will become more and more prominent. Only through the joint efforts of regulators, trading platforms and investors can false transactions be effectively curbed, market order be maintained, and the healthy development of the digital currency industry be promoted. Only in a transparent and fair market environment can digital currency truly play its due role and inject new vitality into the global financial system.

In the process of revealing the truth about Bitcoin transactions, we are deeply aware of the harm that fake transactions have on the market, and we also call on all parties to work together to create a fair and transparent digital currency market. Let us work together to promote the digital currency industry towards a healthier and more sustainable development path.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

A death spiral is forming between trading volume, volatility and derivative activity. Bitcoin trading volume continues to decline, and fell by 16% last week. The weekly trading volume of the entire network is only 13 billion US dollars, while the average weekly trading volume in the first quarter was 40 billion US dollars, and the trading volume has shrunk by nearly 70%.

Most exchanges need to hire institutional teams to increase trading volume to maintain platform liquidity and trading depth to meet users' trading experience. At present, the average daily trading volume of the entire network is only 600 million US dollars. If it is true that more than 95% of the trading volume is inflated, as shown in statistics, the actual trading volume is really pitiful.

Information source: BitcoinTradeVolume

The shrinking trading volume has a counter-effect on the fluctuation of trading prices. As the volatility of Bitcoin prices continues to remain at a low level, the trading activity of derivatives is also declining. CME's Bitcoin futures trading activities have declined significantly. The trading volume of CME Bitcoin futures fell to 87 million US dollars last Friday, which has fallen to the lowest level since April.

Information source: SKEW

A death spiral is forming between trading volume, volatility and derivative activity, and this spiral has brought BTC's price into a state of silence. Back to the technical disk, BTC's overall trend is still in the downward track and the oscillation range of triangle convergence. The triangle range is about to end. Next, whether to choose a direction at the tail or to rebuild a new oscillation pattern, there is no obvious signal at present.

Data source: Tradingview

Last night, the US stock market closed slightly higher, but did not bring up the sentiment of BTC. It really only followed the decline but not the rise. Small currencies are still rotating, and the market value of Bitcoin has dropped to 62%, the lowest point in 5 months; in the past two months, the market value of ERC20 tokens accounted for about 49% of the total assets of the ETH blockchain, which is still the market in the cottage season;

Data source: FTX

The DeFi index has shown a short-term peak signal in the K-line pattern. The probability of a short-term correction trend is relatively high. Those who participate in small currency speculation should pay attention to short risks.