Fellow Steemit Users, we have all seen the volatility that are a hallmark the cryptocurrency markets. A study done by economists at the University of Texas at Austin in the United States of America was released earlier today, and alleges to have uncovered manipulation of Bitcoin prices through the use of Tether, another cryptocurrency tied to the USD value. In describing his paper, John M Griffen says the following:
"This paper investigates whether Tether, a digital currency pegged to U.S. dollars, influences Bitcoin and other cryptocurrency prices during the recent boom. Using 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. Less than 1% of hours with such heavy Tether transactions are associated with 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies. The flow clusters below round prices, induces asymmetric autocorrelations in Bitcoin, and suggests incomplete Tether backing before month-ends. These patterns cannot be explained by investor demand proxies but are most consistent with the supply-based hypothesis where Tether is used to provide price support and manipulate cryptocurrency prices."
While many people in the crypto-space have alleged market manipulation of various forms, from Wall Street investors downplaying Bitcoin so that they can depress the value and buy it low, this is one of the most concretely outlined and widespread alleged manipulations that we here at CryptoNews 24/7 have seen.
These allegations reinforce the need for investors to do their own research into the markets and get familiar with the crypto-space before they decide how to invest their money.
Here is a link to the original paper: https://poseidon01.ssrn.com/delivery.php?ID=827006111117103075116122102091001111103049014093061025126075014126025088004065005067098030052002015017013094025078079021124000052019045093022031020092098110024076119051084044090002118114064081080095006086098116087026020005125028007115001067116124014093&EXT=pdf
We hope that you have found the above information useful, and we wish you the best in all of your endeavors.
Sincerely,
CryptoNews 24/7
Disclaimer: As with all investments, only invest in cryptocurrencies up to an amount of money that you are willing to lose. All information contained in this post is designed to reflect the personal musings of CryptoNews 24/7 and should not be construed to constitute financial or investment advice. We here at CryptoNews 24/7 seek to provide information about the cryptocurrency economy and not to offer investment advice or suggest any course of action. Nothing contained within this post should be construed to be an endorsement of any cryptocurrency or trading platform that is mentioned. Do your own research and contact your financial advisor prior to any investments. Invest at your own risk.
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