Published on June 13th, 2018 | by bitcoin0
Research shows Bitcoin’s price increased due to tether manipulation
The U.S. dollar-pegged tether has been used to support bitcoin’s price during market downturns, a new study published by University of Texas at Austin professors.
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.
These effects are present only after negative returns and periods following the printing of tether.”
This allowed the researchers to map how tether was distributed, and how it impacted bitcoin prices.
The study explains that “tether is created, moved to Bitfinex, and then slowly moved out to other crypto-exchanges, mainly Poloniex and Bittrex.”