The researchers noted that the "bitcoin reversal did not exist before Tether was prevalent in the market and disappears during the period when Tether stops being printed".
However, the two notably discovered that it does not take a large amount of tether to prop bitcoin's price - "even less than 1 percent of extreme exchange of tether for bitcoin has substantial aggregate price effects", the study said.
Bitcoin isn't all it has been cracked up to be, according to a new report by a University of Texas professor.
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For a time Mr Saleh joined forces with the Houthis, but they turned on each other past year and the former president was killed. The early stages of Wednesday's offensive followed statements from UAE and Saudi officials that military action was necessary.
"Tether seems to be used to stabilize and manipulate Bitcoin prices", said Professor John Griffin and Amin Shams in their research paper. The study explains that "tether is created, moved to Bitfinex, and then slowly moved out to other crypto-exchanges, mainly Poloniex and Bittrex".
There is evidence that tether, a digital currency pegged to the US dollar, may have been used to manipulate the price of bitcoin BTC=BTSP and other cryptocurrencies, according to a research paper released by the University of Texas on Wednesday. Bitfinex stopped issuing Tether earlier this year, though the currency, the value of which is pegged to the United States dollar, is still trading in large volumes. Evidence of price manipulation was found in all of those, too.
The CEO of Bitfinex, a cryptocurrency exchange, also runs Tether, and in December, a U.S. regulator sent a subpoena to both companies. The paper does not prove definitively that Bitfinex was tangled in price manipulation, but the evidence gives a strong indicator that it was involved. The Commodity Futures Trading Commission and the U.S. Department of Justice have been investigating whether bitcoin and other cryptocurrency prices are being manipulated, Bloomberg reported last month.
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TMZ reports that Farrah , 27, has since been booked for battery and trespassing and is being held on $500 bail. Police noted Farrah was "displaying signs of intoxication during their investigation".
In the paper, Griffin and Shams write, "By mapping the blockchains of Bitcoin and Tether, we are able to establish that entities associated with the Bitfinex exchange use Tether to purchase Bitcoin when prices are falling". In a nutshell, trades of Tether were "timed following market downturns" triggering "sizable increases in Bitcoin prices".
To prevent future price manipulation, the researchers say that "external capital market surveillance and monitoring" may be necessary to keep the market free from tampering.
"Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation", Bitfinex CEO JL van der Velde told Bloomberg in an e-mailed statement.
Canadian politicians welcome opportunity to host World Cup games
There's no guarantee Canada will have a team at the 2026 World Cup , the first time it will be hosted by more than one country. Their position was weakened by the expectation that four U.S. territories at the centre of a voting row will not take part.