RATE Group | Is Tether Responsible for BTC’s Sudden Jump?
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Is Tether Responsible for BTC’s Sudden Jump?

04 May Is Tether Responsible for BTC’s Sudden Jump?

Posted at 20:31h in Bitcoin News by

Uh oh. Is Tether behind bitcoin’s latest surge?

Tether Is At It Again

Over the years, rumors have swelled that Tether has been tied to bitcoin as a way of boosting its price. University of Texas finance professor John Griffin has put out reports in the past suggesting that the 2017 bitcoin burst we all witnessed was actually caused by traders using Tether – a controversial stable currency – to purchase bitcoin whenever it’s price went down.

Stable coins are those supported by fiat currencies, such as USD, the euro or the yen. As Tether is allegedly backed by the U.S. dollar, whenever someone uses Tether to purchase bitcoin, this inadvertently ties bitcoin to USD as well. Thus, BTC experienced its highest surges three years ago given that Tether was consistently used to buy bitcoin, according to the report.

This has led to questions and concerns regarding potential manipulation, as in 2018, bitcoin experienced a massive drop that saw it lose more than 70 percent of its value by…

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