According to the New York Times, an academic paper has reached the conclusion that Bitcoin has been subject to price manipulation over the past year.
The paper, “Is Bitcoin Really Un-Tethered?”, was written by John M. Griffin and Amin Shams, a professor of finance at the University of Texas, and a Ph.D. candidate at the same institution.
The document is 66 pages long examines a hypothesis that cryptocurrency prices are being manipulated with the dollar-backed token Tether. It concludes that Tether is purchased in large amounts during market downturns, and Bitcoin price increases often follow.
The study focuses on a cryptocurrency exchange called Bitfinex. Bitfinex is one of the biggest cryptocurrency exchanges in the world, handling $7.6 million in trading volumes in the last 24 hours according to coinmarketcap.com. In February we examined its close relationship with Tether – Paradise Papers leaks revealed that Tether was created in the British Virgin Islands by two Bitfinex officials in 2014.
Griffin and Shams studied Bitcoin and Tether movements between March 2017 and March 2018 and noted that Bitcoin returns are “highly correlated” with Tether creation – furthermore “no abnormal returns are observed in months when Tether is not issued.”
< 1 min
Table of contents
MOST TRADED ASSETS
- Binary Options
- Digital Options
- Forex
- Stocks
- Indices
- Commodities
- ETFs
-
EUR/USD
1.04
Trade-0.05% -
USD/JPY
157.1
Trade-0.06% -
GBP/USD
1.25
Trade+0.02% -
AUD/USD
0.62
Trade-0.19% -
GBP/JPY
196.83
Trade-0.04%
-
Shopify Inc.
109.24
Trade+1.01% -
Microsoft Corporation
435.02
Trade-0.35% -
Tesla, Inc.
430.69
Trade+1.51% -
NVIDIA Corporation
139.51
Trade+2.77% -
Coinbase Global, Inc.
268.15
Trade-2.01%
-
Gold
2617.94
Trade+0.06% -
Crude Oil WTI
69.37
Trade+0.01% -
Crude Oil Brent
72.59
Trade-0.1% -
Silver
29.72
Trade+0.17% -
Gold-Gram
84.17
Trade+0.07%
-
US 100
21472.58
Trade+0.03% -
US 30
42928.74
Trade-0.04% -
US 500
5978.98
Trade-0.03% -
GER 30
19887.85
Trade-0.09% -
JP 225
39223.5
Trade-0.51%
-
UltraPro Short QQQ
29.09
Trade-1.84% -
S&P 500 ETF
594.77
Trade+0.61% -
20+ Year Treasury Bond ETF
87.52
Trade-0.74% -
Daily Junior Gold Miners Index
37.51
Trade-0.01% -
Dow Jones Industrial Average ETF
428.87
Trade+0.34%
Your capital might be at risk
Related posts
How To Short Sell Crypto: Making Profits in a Bear Market
2 stars of the crypto market: Bitcoin vs. Ethereum
Day Trading Cryptocurrencies on IQ Option
Cryptocurrency News: Where Are We Headed?
Crypto Trading: Still Hot or Not?
Trading CFDs on Crypto with IQ Option
Bitcoin Technical Analysis: July 2020. Bulls or Bears?
Bitcoin Technical Analysis for July 2019
What should you learn next? Turn the wheel to find out!
