A Very Influential Paper About Tether-Bitcoin Relationship (Manipulation?)

A Very Influential Paper About Tether-Bitcoin Relationship (Manipulation?)

Radovan Vojtko Radovan Vojtko

Radovan Vojtko

Quantpedia.com - The Encyclopedia of Algorithmic & Quantitative Trading Strategies

发布日期: 2018年7月19日
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A very influential research paper about Tether-Bitcoin relationship (price manipulation?), our recommended read to all parties interested in cryptocurrencies ...

Written by Griffin & Schams.

Shortly:

"This paper investigates whether Tether, a digital currency pegged to U.S. dollars, influences Bitcoin and other cryptocurrency prices during the recent boom. Using algorithms to analyze the blockchain data, we find that purchases with Tether are timed following market downturns and result in sizable increases in Bitcoin prices. Less than 1% of hours with such heavy Tether transactions are associated with 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies. The flow clusters below round prices, induces asymmetric auto-correlations in Bitcoin, and suggests incomplete Tether backing before month-ends. These patterns cannot be explained by investor demand proxies but are most consistent with the supply-based hypothesis where Tether is used to provide price support and manipulate cryptocurrency prices."

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