Bitcoin would be worth $2,000 today if Tether didn’t manipulate its price during the 2017 bull run which saw Bitcoin reach an all-time of $20K, according to a “non-biased” crypto trading advisor, CryptoWhale.
In one of his many cautionary trading tips to crypto traders, CryptoWhale stated that traders should always remember that the crypto market is highly manipulated, with Tether playing a huge role in influencing the Bitcoin price movement.
“If tether never manipulated #Bitcoin, the prices would be under 2,000 right now. Take this into account, especially considering there’s multiple lawsuits that will put an end to their price manipulation.”
The June to August 2020 bitcoin bull run has also been manipulated by Tether, which boosts bitcoin price by essentially creating fake capital inflow into its trading volume.
“The 2017 bull run was largely caused by Tether. The 2020 bull run was also caused by tether. If Tether never had the ability to print virtual dollars, then much inflow wouldn’t exist. The price would be drastically lower than it is today.”
Tether Is a Smooth Operator in the Crypto Market
Tether (USDT) is one of the earliest and successful stablecoins that pegs its value to the US dollar to allow traders participation in the crypto market with protection from high negative volatility.
To crypto traders and investors who are aware of various crypto whales, it is largely accepted that whale activity on the market can manipulate prices by either increasing selling or buying pressure.
Crypto trading metrics have gone as far as including large token movements to help investors know the difference between real and wash trading activity by individual whales, coin reserves, or exchanges.
Tether has been accused on multiple occasions of being the digital FED and minting USDT without enough evidence to show their dollar reserves are pegging each USDT at a 1:1 ratio. Earlier in June 2020 Tether’s treasury and the Bitfinex crypto exchange which are owned by the same parent company, iFinex Inc, denied allegations of manipulating prices in the crypto market, together with other affiliates like Poloniex.
The lawsuit claimed that as iFinex subsidiaries, the two made massive and carefully timed purchases of crypto assets to increase buying pressure and cause a spike of said assets. The two are also involved in an ongoing case where Tether is accused of issuing $850 million to Bitfinex to cover up a funding gap in 2019.
Bitcoin Is a Great Asset, Just Over-Manipulated
CryptoWhale usually presents a bearish sentiment towards trading cryptocurrencies, always writing repeated reminders of what could go wrong.
“Remember that trading #Crypto is no different than playing musical chairs. One day the music will stop, and investors who FOMOed in will be left holding bags.”
However, the investor said that while bitcoin is overly manipulated and overvalued in his opinion, it is nonetheless a great asset to hold.