One Whale Was Behind Bitcoin’s 2017 Bull Run, Claim Researchers
Marie Huillet's original article for cointelegraph.com reduced by 58%
Researchers have escalated their claims about market manipulation in winter 2017, now claiming that a single whale was responsible for Bitcoin's historic price surge. John M. Griffin and Amin Shams - of the universities of Texas and Ohio respectively - have updated their previous research, which made the case that market misconduct was allegedly behind Bitcoin's bull run to an all-time high of $20,000 in December 2017."Clairvoyant market timing" or manipulation.
"Purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices. The flow is attributable to one entity, clusters below round prices, induces asymmetric autocorrelations in Bitcoin, and suggests insufficient Tether reserves before month-ends." Rather than indicating demand from cash investors, they argued that these patterns aligned with a "Supply-based hypothesis of unbacked digital money inflating cryptocurrency prices." "Simulations show that these patterns are highly unlikely to be due to chance. This one large player or entity either exhibited clairvoyant market timing or exerted an extremely large price impact on Bitcoin that is not observed in aggregate flows from other smaller traders." Tether's General Counsel Stuart Hoegner has rebuffed the academics' claims, releasing a statement that their research is "Foundationally flawed" and derives from an insufficient data set.
He has further alleged that the research was motivated to bolster a "Parasitic lawsuit" against Tether, Bitfinex and the latter's operator, iFinex.
Donate Bitcoin to this address
Scan the QR code or copy the address below into your wallet to send Bitcoin
Donate Ethereum to this address
Scan the QR code or copy the address below into your wallet to send Ethereum
Donate With MetaMask
Donate ETH With MetaMask
Alternatively, support us by using the following referral links:
CN [too long; didn’t read]
Summarised crypto news.