Bitcoin's soaring value down to manipulation, scientists claim

Bitcoin’s meteoric price rise may have been down to price manipulation using another virtual currency, researchers have suggested.

Scientists at the University of Texas analysed transactions on Bitfinex, where Bitcoin can be bought and sold and identified patterns which suggest that the prices were successfully pushed up when they slumped at other exchanges, by using another virtual currency called Tether.

“Tether seems to be used to stabilize and manipulate Bitcoin prices,“ said Professor John Griffin and Amin Shams in their research paper.

„Tether is ‘pushed’ through a supply-driven scheme to make up a currency, convert it into Bitcoin, and then manipulate the price of Bitcoin and other cryptocurrencies.“…