Tether Manipulation Pushed Up Bitcoin's Price, Researchers Find

in #blockchain6 years ago

In a new study published by the University of Texas it is found that Tether the cryptocurrency that is pegged to the U.S. dollar has been used to support bitcoin’s price during market downturns.

John Griffin and Amin Shams, of the University of Texas at Austin's Department of Finance, published a study Wednesday linking the stablecoin with bitcoin's prices during the 2017 price increases. The published study states that the researchers used "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.

This produced a clear link between the printing of new tether tokens and bitcoin's price increases following bear runs, the study claims, stating:

The two most notable discovery is that it does not take a large amount of tether to prop bitcoin’s price - "even less than 1 percent of extreme exchange of tether for bitcoin has substantial aggregate price effects," the study said.

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That's old news.Tether is cancer in crypto.

it was thought so. This is a study confirming it.

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