Re: A Sudden Loss of Faith in Tether Would Pose Risk to Bitcoin, JPMorgan Says
Tether is being used as a fractional reserve scam to prop up the price of bitcoin.
If tether collapses, then all of the fake money propping up bitcoin also collapses, causing a price drop to $400 or below.
(Price before Tether started manipulating the bitcoin price.)
If tether collapses, then all of the fake money propping up bitcoin also collapses, causing a price drop to $400 or below.
(Price before Tether started manipulating the bitcoin price.)
Could you elaborate how Tether prop up the price of BTC? And what do you mean by "price before Tether started manupulating the bitcoin price"?
Thanks to all your guys' inputs - very interesting.
Tether did not start manipulating the crypto markets to a noticeable degree until 2017 according to the below forensic study.
Bitcoin price was ~$400 before the manipulations started. Personal Observation.
https://www.cnbc.com/2019/11/04/study-single-anonymous-market-manipulator-pushed-bitcoin-to-20000.html
Quote
A forensic study found that tethers, a digital currency, being traded for bitcoins, revealed a pattern of manipulation during the 2017 cryprocurrency boom.
https://www.coindesk.com/another-class-lawsuit-claims-bitfinex-tether-manipulated-bitcoin-market
Quote
"Defendants' control of USD₮ issuances and Bitfinex permitted Defendants and their co-conspirators to coordinate purchases and sales with rising and falling Bitcoin prices. When Bitcoin prices were falling, Defendants and their co-conspirators printed USD₮s and artificially increased the price of Bitcoin. Once Defendants and their co-conspirators artificially inflated the price of Bitcoin, Defendants and their co-conspirators then converted the Bitcoin back into USD₮s to replenish Tether's reserves."