Research: explosive growth of Bitcoin and other crypto in 2017 was possibly the consequence of manipulation
The researchers of the Texas University concluded that the explosive growth of Bitcoin and other currencies could be resulted by a concentrated price manipulation campaign. They reached the conclusion based on algorithms for analysis of the blockchain data for millions of transactions.
It is assumed that growth of Bitcoin was possibly caused not by real market demand, but hidden actions of several major players. The researchers revealed consistent patterns in behavior of Bitcoin and Tether. Any time when the Bitcoin price decreased, the related accounts on Bitfinex purchased large amounts of Bitcoin for Tether (USDT). It is worth to mention that Tether was created and is currently supported by the owners of Bitfinex.
Similar patterns were used to support other crypto as well. Whereas Ether (ETH) and Zcash (ZEC) demonstrated even higher response to Tether injections and grew even more rapidly than Bitcoin. Thereat, the highest growth of crypto was noticed on exchanges that accept Tether.
The researched reached a conclusion that at least 50% of Bitcoin growth and 64% of other cryptos growth was a result of such “support” from Tether. The approach stopped working in 2018 after Bitfinex discontinued issuing additional amounts of Tether.
Some data experts who read the research noted that it is worth to be trusted. Read the complete research.