June 14, 2018
Bitcoins incredible rise in value in the last 12 months has been down to massive market manipulation, a new study has revealed.
During the 2017 peak, which topped out at almost $20,000 (£15,000) per coin, traders were using a separate cryptocurrency called Tether to manipulate its value.
These actions, rather than real demand from investors, propped up the prices of Bitcoin when it was faltering and resulted in the currency’s meteoric rise.
Bitcoin’s price has now crashed to $6,370 (£4,740) – a four month low – following publication of the study.
In a new paper, titled ‘Is Bitcoin Really Un-Tethered?’, University of Texas finance professor John Griffin, and graduate student Amin Shams, look at how Bitcoin’s price may have been artificially inflated last year.
The team looked at the flow of digital currency entering and leaving ocryptocurrency exchange, Bitfinex.
This article was posted: Thursday, June 14, 2018 at 7:47 am