A new study published by the University of Queensland reached today’s bitcoin news where the writer Wang Chun Wei explains that USDT grants do not have a significant effect on bitcoin’s price fluctuations.
In the study, however, you can see that there is a positive relationship between USDT issuance and the increased trading in cryptocurrencies right after. Wei claims there’s no evidence of USDT manipulating BTC’s price. The key proclamation in the study is that ‘’it’s unlikely that tether manipulation caused the 2017 bitcoin rally.
However, Wei argues that USDT grants propose a light relationship with some price swings between Tether issuance and the trading volume and that Tether trading even increased the periods of negative Bitcoin returns. He also notes that he found Tether grants were timed to follow Bitcoin’s slumps confirming another study by Griffin and Shams where they say that purchases with Tether are timed to follow Bitcoin dips so Tether can be used to support Bitcoin prices.
Many other analysts will happily disagree with Wei. Some believe that even though there are many factors that impact Bitcoin’s price movements, bitcoin rallies are correlated with a new issuance of USDT, which is the dollar-pegged “stablecoin” token. The fact that Tether is issuing new tokens is a sign that new capital is coming in the crypto markets. The tokens are created when individuals or organizations deposit physical dollars into Tether’s reserve bank accounts. Also, there are analysts who claim that Tether is increasingly impacting the prices of smaller altcoins such as EOS and NEO instead of the large-cap altcoins.
Crypto Analysts: 2019 May Be A Year Of Bitcoin Accumulation
“Similar to 2015, 2019 may be the year of accumulation.’’Another crypto researcher Willy Woo said that while a crash of bitcoin to $3,122 could lead to an increase in volume, it won’t show signs of starting of the accumulation period. He pointed out:
‘’Despite the technical setup that suggests bullishness is possible, there’s not a lot on-chain volume to fuel a prolonged up move. What we saw in the last 7 weeks was a spike of on-chain volume driven by volatility, coins moving to exchanges to trade. The initial volume spike false signalled a faster detox and an earlier end to the bear market, but in fact it was a volatility side effect. That move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun.’’Until evidence for the accumulation of crypto assets shows up, there are still expectations of high volatility levels.
Scott Galloway Of UCLA Believes Crypto Will Get Worse In 2019
‘’VR and crypto go from bad to worse. AI fails to live up to the hype. 3D printing rises from the ashes. Smart cameras become a hot category.’’His assessment seems to be accurate but can the crypto market prove to be the odd one out? This can be so since many industries are really committed to the crypto sector. Companies such as Fidelity, ICE, and Nasdaq have funded at least five projects in the crypto space over the past year. Venture capitalist Jim Breyer even said:
“So many of the very best computer scientists and deep learning Ph.D. students and postdocs are working on blockchain because they have so much fundamental interest in what blockchain can mean. You don’t want to bet against the best and brightest in the world.’’
Pantera Capital CIO: “Bitcoin Will Not Succeed As Money”
"Bitcoin created the ability to send money around the globe cheaply and easily without having to trust a third party," Krug was confident.He also went on to discuss several revolutions in the past, from the information revolution triggered by printing press up to the telegram, telephone, radio, television and finally, the Internet. When asked about finance, Krug believes that the industry has made leaps of progress such as increases in execution speeds, online user interfaces, brokers etc. However, he stated that a financial revolution powered by the blockchain could advance us into a next era where money, value and finance will all be coordinated thanks to crypto.
"This infrastructure will be borderless, cheap, quick, and, most importantly, will let people trade on things they’ve never been able to exchange before, and if markets for those don’t exist yet, it’ll let them create it," Krug concluded.
Scottish Man Sentenced To Prison For Buying Firearms On The Dark Web With BTC
‘’You claim that you had no intention of causing harm to anyone but the fact remains that you went to considerable lengths to get hold of a potentially lethal weapon and ammunition. You must have appreciated that this was unlawful. For this conduct you must be punished.’’This case is only a number in the series of similar cases where bitcoin is used to carry out illegal activities on the dark web.
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