Bitcoin Price Surge Last Year was Manipulated with Tether - Study Says

Last year, we all witness an abrupt rise in the price of Bitcoin. We never thought of anything behind this rise. But, a recent study by John Griffin, Professor, University of Texas which he did along with graduate student Amin Shams shows that the price of Bitcoin was artificially inflated by using tether.

Tether was one of the most traded cryptocurrencies at that time to buy Bitcoin. Everytime the price of Bitcoin slipped, Tether was used to boost it up.

In the month of December last year, Bitcoin hits all time high $19,343 & now trading at $6,540 (price at the time of writing).

Tether, whose price is equivalent to traditional currency Dollar was launched by famous crypto exchange - Bitfinex. They claims that each tether is backed 1 to 1 by traditional currency reserved in their accounts.

Study found that just 87 hours of tether trading results in 50 percent rise in Bitcoin & 64 percent rise in orher cryptocurrencies. He studied all transactions made on Bitfinix, which are available on public ledger.

Bitfinix pumped users to buy Bitcoin using tether, which helped tether to gain its value very fast. At that time, only few exchanges support Fiat-Crypto trade. So, Bitfinix launched tether as a way to buy Bitcoin. Griffin found that Tether doen't have enough US Dollars to support number of tether coins in circulation.

While this research leads to a debate on how Bitcoin's price was surged lst year with controled activities by top players of the inductry. Some whales seem to agree with this research saying that it looks quite convincing.

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Post a Comment