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Data fails to conclude that Bitfinex shorts are depressing Bitcoin price

Published 06/26/2021, 05:39 PM
Updated 06/26/2021, 07:20 PM
Data fails to conclude that Bitfinex shorts are depressing Bitcoin price

One of the most common errors traders make when analyzing cryptocurrency markets is taking an exchanges' bid and ask data and traded volumes at face value. When doing this type of analysis, the trader has to exclude the trading venues mentioned on multiple 'fake trading volumes' reports, like the one Bitwise published in March 2019.

There's really no way to know if the top exchanges inflate their volumes by granting special access and zero fees for market makers.

Bitcoin price at Coinbase, USD (left) vs. Bitfinex BTC Margin Shorts (right). Source: TradingView
Bitcoin spot exchanges aggregate volume. Source: Coinalyze

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