The Bitcoin price (BTC/USD) has edged higher in today’s trading, bouncing back from the four-month low it reached on Wednesday.
The original cryptocurrency had a difficult Wednesday session, as the wider digital currency market was hit by another big sell-off. Having opened at $6,596.88, the digital coin dipped below the $6,500 mark following a steep drop in the morning session. The coin declined further in the afternoon, dropping to as low as $6,285.63, according to data from cryptocurrency tracker Coinmarketcap. This was Bitcoin’s lowest price level since February 6. The cryptocurrency saw a small uptick towards the end of the session, finishing the day at 6,349.90.
As noted ny CNBC, yesterday’s slump was likely triggered by a study released by the University of Texas, suggesting that at least half of Bitcoin’s rise last year was due to price manipulation on cryptocurrency exchange Bitfinex. According to the study, the dollar-pegged digital currency Tether was used to buy Bitcoin in key moments, which helped "stabilize and manipulate" the original cryptocoin’s price.
Concerns that Tether tokens had been used to prop up the Bitcoin price in times of weakness first surfaced in January. Around that time Bloomberg reported that in December the US Commodity Futures and Trading Commission sent subpoenas to Bitfinex and Tether, the company behind the dollar-pegged token. The companies share the same chief executive officer.
Tether has also faced criticism that it does not have enough dollar holdings to back all of its tokens.
Bitcoin has managed to return above the $6,500 mark today, after experiencing a price jump in the early hours of the session.
As of 10:09 BST, the Bitcoin price stood at $6,520.29, down 0.2% from the same time yesterday. The coin’s market capitalisation currently stands at $111.5 billion, which represents 39.8% of the total value of all digital currencies.
For further information on how to buy and trade Bitcoin, see our comprehensive Bitcoin guide.