Price of btc decline :Bloomberg analyst Eric Balchunas has stated that BlackRock and Bitcoin exchange-traded funds (ETFs) have prevented a significant decline in Bitcoin (BTC) prices. This assertion follows rumors that BlackRock, the world’s largest asset manager, has been receiving Bitcoin IOUs from the Coinbase crypto exchange.
A well-known crypto analyst has proposed a theory indicating that BlackRock might be using these Bitcoin IOUs to short BTC, which could be contributing to price declines at various times. Short-selling involves borrowing an asset and selling it, aiming to repurchase it later at a lower price. If BlackRock is indeed engaging in this practice, it could create additional selling pressure on Bitcoin, affecting its overall price stability.
The actions of major institutional players like BlackRock are crucial in shaping the dynamics of the Bitcoin market. Their involvement can have both stabilizing and destabilizing effects on Bitcoin’s price movements. While Bitcoin ETFs are expected to attract more institutional capital, strategies like short-selling could complicate the market landscape. As the cryptocurrency environment evolves, the influence of significant asset managers will be closely monitored by investors and analysts seeking to understand Bitcoin’s price trajectory.
BlackRock And Bitcoin ETFs Saved Bitcoin Price (bloomberg news)
Balchunas stated in an X post that BlackRock and the Bitcoin ETFs repeatedly saved the BTC price “from the abyss.” The analyst made this statement to rebut arguments that traditional investors were to blame every time the coin declined. He added that he understands why these theories exist, as people want to “scapegoat the ETFs” because they find it hard to believe that the native HODLers could be the sellers.
However, Eric Balchunas claimed that these Bitcoin natives are indeed the sellers. He remarked that they are sabotaging the Bitcoin price, not traditional investors. Popular Bitcoin analyst Ali Martinez recently revealed how BTC miners had sold over 30,000 $BTC in three days, proving Balchunas’s point that the “call is coming from inside the house.”
It is also worth mentioning that these Bitcoin ETFs contributed significantly to the BTC price reaching a new all-time high (ATH) of $73,000 in March earlier this year. These funds witnessed impressive net inflows upon launch, causing new money to flow into the BTC ecosystem and spark a rise in its price. BlackRock, in particular, has continued to hold on to its coins, recording only three daily net outflows since its January launch.
Coinbase Helping TradFi To Supress Bitcoin
There have been rumors that Coinbase is writing Bitcoin IOUs for BlackRock, leading to price suppression. Crypto analyst Tyler Durden is one of those who have continued to make such allegations. Earlier this year, the analyst explained that the crypto exchange’s IOUs to the asset manager means they can borrow as much Bitcoin to short and not show proof that they hold the coin 1:1.
To further prove his point that the world’s largest asset manager was suppressing BTC price with Coinbase’s help, Durden alluded to data from Cryptoquant. He claimed the US crypto exchange was the biggest buyer and seller on every bottom and top in this range. The analyst also opined that the asset manager will put a top on the market at some point and crash it or create a major pullback.
Meanwhile, Coinbase CEO Brian Armstrong responded to Durden’s allegations, clarified how ETF mints and burns are processed, and ultimately settled on-chain. He indicated there was no foul play, noting that they are audited and these reports are available to everyone. Armstrong added that they had no right to share the addresses of their institutional clients, including BlackRock.
At the time of writing, Bitcoin is trading at around $60,000. Coingape reported that this week’s projected Fed rate cuts could benefit the BTC price. Historically, this macro event is bullish for the coin.
