Research: Tether, Bitfinex ‘Manipulation’ Reason Behind 2017 Bitcoin Price Highs

Research: Tether, Bitfinex ‘Manipulation’ Reason Behind 2017 Bitcoin Price Highs

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Tether (USDT) has once again become the source of criticism after a new study blamed it for Bitcoin price manipulation in 2017, The New York Times reports Wednesday, June 13.

A paper released June 13 by John M. Griffin and Amin Shams of the University of Texas suggests that transaction patterns show Tether was “used to provide price support and manipulate cryptocurrency prices.”

Half of the Bitcoin price rise in December 2017, when the cryptocurrency reached all-time highs around $20,000, was explicitly due to Tether and issuer Bitfinex, the researchers claim.

“Using algorithms to analyze the blockchain data, we find that purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices,” the paper’s abstract summarizes.

“Less than 1% of hours with such heavy Tether transactions are associated with 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies.”

Tether has routinely fallen under suspicion since late last year after repeat releases of coins onto the market had an immediate knock-on effect on Bitcoin prices.

Griffin and Shams’ hypothesis has this time also become fodder for mainstream media, publications seizing on the information to demonstrate the allegedly opaque nature of

Bulls on Crypto Street is a trading education website dedicated to cryptocurrencies. We teach strategies for swing and day trading cryptocurrencies such as Bitcoin, Ethereum, Litecoin, UnikoinGold, and other Altcoins. We're at the forefront of this industry and are continuously providing up to date information on each coin, regulations, news, token sales, and much more.

Read the full article at https://cointelegraph.com/news/research-tether-bitfinex-manipulation-reason-behind-2017-bitcoin-price-highs

10 thoughts on “How To Setup Your Cryptocurrency Trading Platform

  1. Did I miss it, but I dont see anything about your price prediction except it might test 5000 at some point. Whats you PT for end of 2018?

  2. Wouldn’t Paradex then allow Coinbase to operate as a “decentralized” exchange? For example, users will be in control of their Private Keys, instead of relying on the security of Coinbase? Correct me if I’m wrong. Thank you!

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