Longhash Takes a Shot at Bitcoin’s Bull Run Theory

Hold on to your wallets, folks! The cryptocurrency analysts at Longhash have decided to shake things up by releasing research that takes aim at the virtually mythical single-whale theory behind Bitcoin’s epic bull run in 2017. Spoiler alert: it’s a lot more complicated than just one entity leading the charge.

Tether Purchasing Power: The New Metric That’s Upending Assumptions

On November 18, Longhash introduced a mind-bending metric they’ve dubbed “Tether Purchasing Power.” It’s like the superhero of crypto analytics, here to answer the question of whether Tether (USDT) has been playing puppeteer with the markets. According to their metrics, the belly of the beast is how many bitcoins you could’ve snagged based on Tether’s supply at any given moment. A high ratio? Well, that means Tether could pull some strings!

Tether’s Market Manipulation Potential: More Effective When Prices Drop

Here’s where it gets juicy. Longhash’s researchers found that Tether’s perceived ability to manipulate Bitcoin prices seems to peak during downward trends. In other words, when BTC’s price is in the doldrums, Tether thrives, apparently capable of swooping in and creating a ruckus. But when Bitcoin was hitting those glorious all-time highs in late 2017? Not so much. Longhash pointedly notes:

“This suggests that even if Tether were indeed manipulating the market, its ability to do so is strongest when Bitcoin prices fall.”

Who Let the Whales Out? Rethinking Price Manipulation

Let’s take a trip down memory lane! The 2017 Bitcoin price manipulation theory seemed to imply that a lone player orchestrated the entire affair. In an updated academic paper titled “Is Bitcoin Really Un-Tethered?” researchers scrutinize this claim, putting Tether and Bitfinex squarely in the spotlight for supposedly catalyzing this financial hoax.

Analysts Laugh Off the Single Whale Theory

As you might expect, Bitfinex wasn’t having any of this. They dismissed the accusations faster than you can say “blockchain,” calling the study a “money grab dressed up as academia.” Analysts from Weiss Ratings jumped into the ring as well, dismissing the idea of a single player causing the massive prices to inflate. They chortled:

“There’s abundant anecdotal evidence that throws great doubt on the one-large-player theory.”

Their argument? With exchanges overwhelmed and public interest skyrocketing—Google searches for terms like “Bitcoin” were going through the roof—it’s clear that the 2017 surge was a more collective force rather than the whims of a lone whale.

A Symphony or Solo Act? The True Nature of the 2017 Bull Run

So, what’s the takeaway from all this? If nothing else, it seems the 2017 Bitcoin surge was more of a boisterous choir, full of enthusiastic crypto enthusiasts, than a solo performance by a single whale. Instead of one mysterious puppet master behind the curtain, there were thousands of hands on deck pushing Bitcoin prices skyward.