Bitcoin and Tether seem to be best friends
- Bitcoin, $6,000 is likely to be a strong support level now.
- Tether may be used to manipulate Bitcoin price last year.
- Ethereum Classic Adopted by Coinbase
Finance professor John Griffin and co-author Amin Shams wrote “Tether seems to be used, both to stabilize and manipulate Bitcoin prices,”
A new research by a professor of the University of Texas who is known for researching and flagging various shady activities in the (VIX) benchmark, tries to prove a pattern that probably shows suspicious activities like, Tether being spent on the popular digital coin Bitcoin at key moments to help drive the coin to the record price last December.
The uncertainty created by the fact which involved Tether and Bitfinex since last year has been escalated in the cryptocurrency world and shakes the trust of the investors.
Worsethan the uncertainty was the fact thatBitfinex lost the relationship with the banks but yet continued to operate.
Even though the U.S. Commodity Futures Trading Commission tried to find proof that that Tether is backed by a reserve of U.S. dollarsTether and Bitfinex haven’t been accused of any of the above accusations claimed Bitfinex Chief Executive Officer JL van der Velde.
Bitfinex Chief Executive Officer JL van der Velde:“Bitfinex nor Tether is, or has ever, engaged in any sort of market or price manipulation,” said in an emailed statement. “Tether issuances cannot be used to prop up the price of Bitcoin or any other coin/token on Bitfinex.”
Now while cryptocurrencies keep falling and the bear market is holding strong, Coinbase, on the other hand, added the fifth coin in their platform, the Ethereum Classic (ETC).Ethereum ClassicsupportsBitcoin, Litecoin, Bitcoin Cash, and Ethereum.
Ethereum Classic ranking number is 18 on the cryptocurrency market cap list, that creates some questions why Coinbaseselected that particular coin when other major coins which are more popular like Ripplehave never been selected.
The coin will not be available any time soon, they try to start to implement the necessary infrastructure. We can’t say for sure when will begin exactlyalthough Coinbase commented it would happen “in the coming months.”
Now based on Bloomberg Bitcoin’s relative-strength index went down below 30.
This levelcould be considered an indication of oversold which has been used many times in equities and some other asset classes as It typically rises, then reverses back above 30, in a matter of days, according to a five-year analysis.
Erlam saidThe entire crypto space seems to be taking the hit now, “and he added
“For Bitcoin, $6,000 seems to be a support level now. If I’m bearish, I’m desperate to see it break below $6,000.”