In the last few months there has been a lot of talk on the internet about the digital currency band (USDT) and whether it is really backed by US dollars or not. Additionally, there have been skeptics, speculators, anonymous Twitter handles, and well-researched reports that the printing of ribbons has significantly changed the price of BTC over the past year. Just recently a Ph.D. The student at the University of Groningen analyzed the situation and his results show that the theory that new cables are pumping the Bitcoin price seems unlikely.
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The tether printing and BTC pump theories do not support a statistical perspective
Two days ago, Oleksandr Ivanov, a data scientist from the University of Groningen, revealed A “statistical point of view” that deals with the theory behind the bands that pump the price of Bitcoin. Many people believe that tethered printing (USDT) caused a significant increase in the value of Bitcoin, and they believe this relationship correlates with the phenomenal increase over the past year. A study called ‘The Tether Report‘says that when printing USDTs, the price had shifted into higher gear for the Bitfinex wallet within two hours of the arrival of 91 different tether grants. Although some people believe the two digital currencies are “tied”, Ivanov says that the “correlation is still near zero in all cases”.
“I approached this question from a statistical point of view. If the alleged tether strategy applies, at some point we should see a positive correlation between the change in the number of tethers and the change in the Bitcoin price, ”explains Ivanov’s analysis.
Historical data of the Bitcoin price and the number of cables in 2017 then calculated the daily percentage change in the Bitcoin price.
The daily change in Tether’s market capitalization (the number of Tethers).
A negative correlation between the number of cables and the change in Bitcoin price
Ivanov used the historical data from the BTC prices using Coinmarketcap and the number of cables in 2017. He then calculated the daily percentage change in Bitcoin price and the daily change in the number of cables present.
“Next, I plot the daily percentage change in bitcoin price versus the number of daily percentage changes in the bands, and most of the points center around zero. Some points in the right corner of the graph represent large percentage changes in the number of bands. These are the outliers. Interestingly, they are mostly below zero in the axis of the percentage change in Bitcoin price, ”says Ivanov’s research details.
The Pearson Correlation Coefficient for the percent change in the daily bitcoin price and the daily percent change in the tether is -0.17168 (the p-value is 0.001, which is statistically significant). So there is a negative correlation between the change in the number of cables and the change in Bitcoin price.
The researcher then investigates whether ribbons are used to pump BTC prices over an extended period of time. The “correlation is still close to zero in all cases,” says Ivanov, and his tests do not support the claim that USDT pressure shifts BTC prices – although, as Ivanov explains, his statistical analysis does not tether manipulations absolutely completely refuted.
“A transparent public review of Tether will shed light on this issue,” concludes Ivanov.
What do you think of Ivanov’s research? Do you think BTC pumped BTC? Let us know in the comments below.
Images via Pixabay, Treasury Department, Tether, Oleksandr Ivanov, and Forklog.
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Analysis, Testing, Bitcoin, Bitcoin Price, BitFinex, BTC, Cryptocurrency Markets, Dollars, N-Featured, Statistics, Tether, Tetherusd, USD, USDT
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