Claims of Tether being used to manipulate the price of Bitcoin

[JohnHopler]

Came across a Norwegian blog post, in which the author claims that Tether is being used to manipulate price swings in Bitcoin.

He's not the first to make the accusation. However, I thought it was interesting that he's also dug up transactions from Omniexplorer which shows the correlation between price swings and the printing of new money.

His rationale is that Tether floods the market with newly minted tokens at certain time points, buying up bitcoins in large numbers, while the same insiders profit from derivatives contracts.

A small increase in the price would yield massive profits when a position is being leveraged.

Has anyone looked into this, and what the status is?

[wmf]

Yeah, this has been discussed extensively on HN. More recently, someone from Circle claims that it was just whales doing arbitrage: https://www.theblockcrypto.com/post/48857/former-head-of-cir... Hopefully the New York investigation will expose some facts that can prove or disprove this theory: https://davidgerard.co.uk/blockchain/2019/12/13/new-yorks-pr...

[JohnHopler]

Edit: Forgot to add the source, if anyone wants to read the details. I guess Google Translate should work well for most of ya: https://www.xn--privatkonomi-0jb.net/tether-risiko-kryptoval...