New study reveals controversial views around record Bitcoin price

Thursday 14 June 2018 11:13 CET | News

Researchers from the University of Texas have published a paper that makes a remarkable claim: the record-breaking Bitcoin price form 2017 was actually a fraud.

The researchers found that the price patterns of Bitcoin are most consistent with the supply-based hypothesis where Tether is used to provide price support and manipulate cryptocurrency prices. The researchers looked at the relationship between Tether and the price of Bitcoin between March 2016 and March 2018 focusing on last year. The price rose to almost USD 20,000 in December and then dropped to USD 6,600 by March. It’s now trading below that, with price hovering at around USD 6,480 at the time of this writing, and dropping.

For those who may not know much about Tether, it’s a token meant to help traders buy and sell cryptocurrencies for US dollars across exchanges and increase the speed of transfers. Every single Tether should always be valued at USD 1, and each Tether should be backed up by a real dollar.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: cryptocurrencies, study, Bitcoin price, Tether
Countries: World

Industry Events