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

Tether (USDT) has as soon as once more turn out to be the supply of complaint after a new study blamed it for Bitcoin price manipulation in 2017, The New York Times reports Wednesday, June 13.

A paper launched June 13 via John M. Griffin and Amin Shams of the University of Texas means that transaction patterns display Tether was once “used to provide price support and manipulate cryptocurrency prices.”

Half of the Bitcoin worth upward push in December 2017, when the cryptocurrency reached all-time highs round $20,000, was once explicitly because of Tether and issuer Bitfinex, the researchers declare.

“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 summary 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 mechanically fallen under suspicion since overdue remaining 12 months after repeat releases of cash onto the marketplace had a direct knock-on impact on Bitcoin costs.

Griffin and Shams’ speculation has this time additionally turn out to be fodder for mainstream media, publications seizing at the data to display the allegedly opaque nature of Bitcoin markets.

According to the New York Times, the analysis “likely to stoke a debate about how much of Bitcoin’s skyrocketing gain last year was caused by the covert actions of a few big players, rather than real demand from investors.”

Nonetheless, some business figures looked as if it would agree, fellow analysis company Chainalysis claiming the effects “seem credible.”

This week, Tether handed each Monero and Dash to turn out to be the cryptocurrency with the twelfth-largest market cap.

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