Bloomberg: Tether’s Recent $500 Million Issuance Should Not Worry Investors

The new $500 million issuances of the dollar-pegged stablecoin Tether (USDT) are currently not related to the prices of the major cryptocurrencies such as Bitcoin, or smaller altcoins. This is what Bloomberg recently reported, after reviewing the market situation in detail.

As Bloomberg noted in the article, the current allegations that Tether is used to manipulate the price of Bitcoin (BTC) – initially put forward in a paper by the University of Texas – are definitely not what’s preventing the crypto market from a new rally.

The paper, which was published in June, claimed that Bitcoin reached the all-time high of $20,000 due to the price manipulation that involved both Tether (USDT) as well as the sixth largest crypto exchange Bitfinex, which is according to it “the only direct client” of Tether.

However, Bloomberg in June also noted that the research paper used 87 examples of the largest purchases of Tether – and found out that even though they accounted for “less than 1% of the time period examined, they amounted to about 50% of Bitcoin’s price return over the year.”

Bloomberg also noted that the findings made in a recent research paper by the blockchain research firm Chainalysis – which claim that Tether is increasingly impacting the prices of smaller altcoins such as EOS and NEO instead of the large-cap altcoins – are not true for August.

The business and market news giant said that “not even more than half a billion” is enough to make any impact on the price of EOS and NEO, citing that the altcoins have dropped 37% and 44% only this month respectively.