Researchers Reach Obvious Conclusion That Bitcoin's Price Was Artificially Inflated

Bitcoin New Research Claims Bitcoin Price was Manipulated using Tether  John Mc Mahon

Bottom line: Remember when Bitcoin hit its highest price of over $19,000 a year ago? Price manipulation and collusion may be to blame.

Tether [USDT], one of the most traded cryptocurrencies supported by platforms like Bitfinix, ShapeShift, Bittrex, and Omni, shows an indication of being spent on Bitcoin in its critical moments, according to research by a University of Texas professor. The manipulation was so successful that it accounted for at least 50 percent of the gains Bitcoin and other cryptocurrencies such as Ethereum made over the a year ago. He added that Tether seems to be used both to "stabilise and manipulate bitcoin prices". Since exchanges often face difficulties finding the banking partners and achieving the regulatory compliance necessary to offer fiat-to-crypto trading pairs, many altcoin exchanges use tether as a proxy for physical Dollars.

However, the currency may have had another shady goal; large amounts of Tether were also used buy Bitcoin, which propped up its value, the researchers claim.

A paper released Wednesday by a professor at the University of Texas titled "Is Bitcoin Really Un-Tethered?" claims that fraudulent transactions of Tether, a digital currency pegged to the United States dollars, were responsible for approximately 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies. More than $2.2 billion (£1.6 billion) of tether was issued between March 2017 and January 2018, according to the paper. These purchases alone accounted for 50 percent of the cryptocurrency's compounded gains, when its value skyrocketed from $1,200 to around $10,000. The currency is plunged as a stable alternative to Bitcoin's levity, acting as a harbor for crypto investors.

Chelsea FC, Arsenal keen on deal to sign top 26-year-old
The opening day of the season has the whopper clash between Arsenal and their tormentors from last season, the champions Manchester City .

The academics concluded that the price patterns were "most consistent with the supply-based hypothesis where Tether is used to provide price support and manipulate cryptocurrency prices".

The authors of the new 66-page paper do not have emails or documents that prove that Bitfinex knew about or was responsible for price manipulation.

Bitcoin reached its peak price of nearly $20,000 in December but is now trading at around $6,300 according to the Coin Market Cap. Their paper seems to confirm what many have believed for months, if not years, that cryptocurrency markets are susceptible to manipulation. They found that half of the increase in Bitcoin's price in 2017 could be traced to the hours immediately after Tether flowed to a handful of other exchanges, generally when the price was declining.

Related News:

  • China reaffirmed commitment to N Korea sanctions - Pompeo

    China reaffirmed commitment to N Korea sanctions - Pompeo

    The rival Koreas were holding rare high-level military talks on Thursday reducing tensions across their heavily fortified border. Kirby said the appropriate thing for Trump to do in that situation would have been to nod his head and shake the general's hand.
    Story Mode, Stranger Things game may be in development

    Story Mode, Stranger Things game may be in development

    Telltale's games are a ideal match for this technology, since they generally require simple commands and dialogue choices to play. Despite all this, Netflix has stressed that they are not venturing into the gaming industry themselves.
    Star Fox is joining Ubisoft’s Starlink: Battle for Atlas

    Star Fox is joining Ubisoft’s Starlink: Battle for Atlas

    Starlink's success will probably hinge on whether the game is more than just an elaborate gimmick. Starlink: Battle for Atlas will launch on October 16 for Nintendo Switch, PS4, and Xbox One.
  • Spain offers to take in stranded migrant ship

    Spain offers to take in stranded migrant ship

    The migrants, including pregnant women and scores of children, were saved by the French charity SOS Mediterranee on Saturday. Right-wing politicians have accused charity boats operating off the coast of Libya of operating as "taxis" for migrants.
    Palestinians seek United Nations  vote blaming Israel; US wants changes

    Palestinians seek United Nations vote blaming Israel; US wants changes

    It also seeks recommendations to protect Palestinian civilians. "We want our civilian population to be protected". Ambassador Nikki HaleyNimrata (Nikki) HaleyWhat you need to know about Tuesday's elections South Carolina Gov.
    Rebel Wilson: Court slashes actress's record defamation payout

    Rebel Wilson: Court slashes actress's record defamation payout

    The Court of Appeal handed down its judgment in Melbourne on Thursday and Wilson was not present in court for the ruling. Wilson is overseas at the moment, so she has yet to comment on today's decision.
  • Freeland calls tariffs 'absurd' after meeting US Senate committee

    Freeland calls tariffs 'absurd' after meeting US Senate committee

    Canadians are "polite, we're reasonable, but we also will not be pushed around", Trudeau said. The majority of US senators agree with that view, said the committee's Republican chair, Sen.
    Saudi-led forces launch biggest assault of Yemen war

    Saudi-led forces launch biggest assault of Yemen war

    The mother of two chose to leave her village of Taif a few days ago, "during the last few days of the holy month of Ramadan". Two Saudi and UAE aid ships were in the waters off Hudaida, coalition spokesman Turki al-Maliki told Saudi state media.
    Meghan and Harry to tour Australia and New Zealand

    Meghan and Harry to tour Australia and New Zealand

    Meghan also repaid the gesture in kind by allegedly giving Kate an actual friendship bracelet at her own wedding to Prince Harry . It's official! The new royal couple exchanged their vows at a royal ceremony at Windsor Castle, near London, in England.
  • Reach out to those who may be struggling

    Reach out to those who may be struggling

    The two deaths sparked a public conversation about depression and suicide, leading to a 25% uptick in calls to suicide hotlines. Robert Dicker, associate director of child and adolescent psychiatry at Zucker Hillside Hospital in NY , told Healthline.
    Apple`s 2018 models likely to be cheaper than iPhone X

    Apple`s 2018 models likely to be cheaper than iPhone X

    However, Kelly adds that the flash will hang out on the side of the triple camera module so it's anyone's guess at the moment. The alleged "budget" iPhone model has a 6.1in display - it's not confirmed but presumably this is LCD rather than OLED .
    Tyson Fury beats Sefer Seferi in comeback fight

    Tyson Fury beats Sefer Seferi in comeback fight

    It was not always pretty from Fury, but it allowed the 6ft 9in Englishman to shed some of the ring rust before moving on to harder tests.


Most liked

Meghan Markle's Awkward Moment With the Queen
FILE PHOTO: Britain's Queen Elizabeth takes part in the Trooping the Colour parade in central London , Britain, June 9, 2018. Cohen handed in her notice last September, but it has been reported she has agreed to stay on as interim private secretary.

Musk's Boring Company wins bid to build high-speed system in Chicago
At a news conference with Mayor Rahm Emanuel on Thursday, Musk said the Loop "will ultimately transition to the Hyperloop system". Without a great improvement in the cost of boring tunnels , their current giant infrastructure projects won't amount to much.

Host nation Russian Federation thrash Saudi Arabia in World Cup opener
Egypt coach Hector Cuper said he could assure fans "almost 100 percent" Salah will play some part in Yekaterinburg. Luzhniki exploded into raptures after only 12 minutes when Yury Gazinsky headed home for the opener.

Saudi Crown Prince leaves for Russian Federation to attend World Cup opening
North America will host the six-team playoff tournament in November 2025 to decide the last two places in the 48-team lineup. UEFA will push strongly for the 2030 World Cup , keeping the modern rate of every third edition hosted in Europe.

Here are the details on the Wilkes-Barre tornado from National Weather Service
The National Weather Service will be on the scene Thursday to access the damage and determine if a tornado touched down. Emergency crews from across the region.

Robbie Williams flips off the camera at the opening ceremony
Either way, Robbie Williams has given the world another hit that we're all talking about, so we can at least take solace in that. It will be recalled that the 2014 World Cup opening ceremony in Brazil was headlined by Pitbull and Jennifer Lopez .

PELOSI POUNCES: Nancy SLAMS Trump Over ‘Hasty’ Singapore Summit
On nuclear weapons, Mr Kim "reaffirmed his firm and unwavering commitment to complete denuclearisation of the Korean peninsula". So number one we save money, a lot, and number two, it really is something that I think they [North Korea] very much appreciate.

Salah remains a doubt for match against Uruguay-Egyptian FA
So I thought to myself: 'I have quite a few games to play before the end of the season, I can break the all-time record!'. Salah, 25, netted 44 goals in all competitions under Jurgen Klopp this season.

David de Gea shoots down questions despite Real Madrid interest
David De Gea says discussions about his future at Manchester United are not important as he focuses on the upcoming World Cup . On the eve of Euro 2016, David De Gea was alleged to have been involved in a sexual assault case but was never charged.

FG Declares Friday, Monday Public Holidays To Mark Eid-El-Fitr
The private sector receives two holiday days for Eid, which means either Friday and Saturday will be off, or Saturday and Sunday. Now, that Eid ul-Fitr is around the corner, it is quite probable that the moon sighting problem will persist yet again.

A success for Kim, not so much for Trump
And Kim, for his part, has offered no specificity. "I'm not for Russian Federation , I'm for the United States", Trump said. Trump's own chest-thumping tweet seemed reminiscent of the "Mission Accomplished" banner flown behind President George W.

Super Eagles buzzing and in high spirits for first training in Essentuki
It's only 2 days left to the start of the FIFA World Cup in Russian Federation and teams, more or less, have completed preparations.

Treasury slaps sanctions on firms aiding Russian Federation security service
It also said that Russian Federation had been tracking undersea cables that carry the bulk of the world's telecommunications data. USA officials said Divetechnoservies procured underwater equipment and diving systems for Russian government agencies.

Real Madrid save €2M from Lopetegui sacking
Spain have named Fernando Hierro as Julen Lopetegui's replacement following the new Real Madrid boss' sacking. Spain begin their campaign with a clash against Portugal in Sochi on Friday.

Macron Calls Trump Incoherent After He Refuses To Sign G7 Statement
Trump has infuriated the European Union, Canada and Mexico by imposing tariffs on steel and aluminium imports. Trump swiftly responded to Trudeau by upending the communiqué in a series of tweets Saturday evening.