Stablecoins are not driving up the price of Bitcoin and other cryptocurrencies, according to a new study from the Centre for Economical Policy Enquiry.

Academics Richard Yard Lyons from UC Berkeley and Ganesh Viswanath-Natraj from the Warwick Business School looked at the issuance of Tether (USDT) and other stablecoins over the last 3 years, including during the price pump in late 2022.

Contrary to the pop belief that the Bitcoin toll is being manipulated with fresh minted batches of Tether, the researchers found little correlation between prices and new stablecoins issuance:

"Our bottom line: Nosotros discover no systematic evidence of stablecoin issuance driving cryptocurrency prices."

So what is going on?

The researchers studied a variety of trading data and patterns between Tether and other crypto markets and determined that stablecoins were issued and used past investors in the manner they were intended: as a stable store of value and a safe haven from market volatility.

"In periods of risk, some investors will cull to commutation into a better shop of value," the researchers note. "Portfolio rebalancing toward Tether and other stablecoins provide this function with minimal intermediation costs."

They contend that stablecoin issuance is a response to market need:

"Our prove supports alternative views, namely, that stable-money issuance endogenously responds to deviations of the secondary market rate from the pegged rate, and stable coins consistently perform a safe-haven part in the digital economy."

Widespread conventionalities of market place manipulation

Tether conspiracy theorists accept long pointed to a 2022 study by John Griffin from the Academy of Texas and Amin Shams from Ohio State that declared the 2022 bull run had been manipulated with Tether.

They found that "purchases with Tether are timed following the market downturns and result in sizable increases in Bitcoin prices." The controversial merits defenseless the attending of both cryptocurrency enthusiasts and mainstream press.

The idea that the issuance of Tether precedes a Bitcoin price pump is now taken past some equally a bullish sign. For example an commodity in Bitcoinist yesterday nearly "Tether printer divergence" argued the fact that the BTC price is notwithstanding to go upwards following a big amount of Tether existence printed could point towards a new bull run.

Lawsuits on marketplace manipulation

The University of Texas inquiry was used confronting Tether and iFinex in lawsuits around market place manipulation. This latest enquiry casts doubts on those claims, which Tether has described every bit "without merit or legal basis".