Researchers at the American Institute for Economic Research (AIER) teamed with Missouri University to examine whether the price of bitcoin is being manipulated by a few traders. Conspiracy theories abound, and new accusations arise regularly. A first in a series of papers on the world’s most popular cryptocurrency, the present project attempts to show a connection to major price spikes and newsworthy events.
AIER Dampens Price Conspiratorialists
“While the nature of the news events does not necessarily explain the magnitude of Bitcoin’s price changes or its daily volatility,” concludes Bitcoin’s Largest Price Changes Coincide With Major News Events About the Cryptocurrency, a research brief published at AIER by Senior Research Fellow Max Gulker, “it does suggest that the market is not being driven entirely by manipulation or the behavior of small numbers of traders.”
The American Institute for Economic Research is more on the ecosystem’s radar these days in large part to a recent change in management. Popular market economist Edward Stringham took a position as President, Director of Research and Education, and promptly brought over Jeffrey Tucker from the Foundation for Economic Education. Both Mr. Stringham and Mr. Tucker are well known bitcoin enthusiasts, and Mr. Tucker was widely considered to have given the most stirring talk at this year’s North American Bitcoin Conference in Miami.
The brief concedes immediately bitcoin might not yet be subject to efficient market theory. Its price in such a scenario “should reflect all publicly available information about it, and changes in price should reflect new information.” Bitcoin, though it has grown in Read More Here