As CNBC notes, Bitcoin futures have sunk 55 percent this year, reaching their lowest levels since February.
Weighing in on the controversies surrounding allegations that Tether (USDT) is being used as a shorting mechanism by institutional players on the BTC futures markets, Brian Stutland, CIO of Equity Armor Investments, dismissed the idea as “far-fetched,” saying:
“I know there’s a lot of talk out there about [BTC price] manipulation by some professor who has probably never traded any significant money … if people were producing Tether to go ahead and then buy Bitcoin, then to me it seems that Tether should go to zero, not Bitcoin.”
Stutland’s mention of “some professor” refers to a paper released June 13 by John M. Griffin and Amin Shams of the University of Texas, which suggested that transaction patterns suggest Tether was “used to provide price support and manipulate cryptocurrency prices,” artificially deflating the price of Bitcoin to maximize short-term returns on futures contracts.
Stutland proposed a different explanation for Bitcoin’s declining fortunes in 2018, saying that low volatility in the stock markets the coming quarter mean that “people would rather be invested in the stock markets” than Bitcoin. “Bitcoin trading to the $6,000 level seems where it wants to go.” […]