Analysis: Tether manipulation did not lead to the Bitcoin 2017 market

On November 18th, the media Long Hash released an article saying that in order to measure the impact of Tether on the bitcoin market, we calculated a measure called Tether purchasing power, which is defined as the market value of Tether divided by the market value of bitcoin. It measures how many bitcoins can be purchased for all Tether supplies in the market at current spot prices. The higher the ratio, the more potential manipulations are performed using Tether. In the chart below, we can see that during the bull market in 2017, Tether purchasing power has been rising until summer, and then gradually declined until the end of the year. It rose sharply during the bear market and reached its peak at the end of 2018. This shows that even though Tether is indeed manipulating the market, when bitcoin prices fall, their maneuverability is actually the strongest. This contradicts the statement that the Tether issue promoted the 2017 bull market. During the bull market peak, Tether's supply actually failed to keep up. Note: A recent academic paper claimed that Tether manipulation led to the 2017 bitcoin bull market, which attracted a lot of attention.