BlackRock And Bitcoin ETFs Saved BTC Price, Bloomberg Analyst Claims

by

As an analyst with over two decades of experience in the financial markets, I have seen my fair share of market manipulations and rumors. However, the recent allegations regarding BlackRock and Coinbase’s potential role in Bitcoin price suppression is a fascinating twist to the ongoing saga of traditional finance (TradFi) versus cryptocurrencies.

Eric Balchunas, an analyst for Bloomberg, believes that BlackRock and Bitcoin ETFs prevented a significant drop in Bitcoin prices. This claim stems from speculation about BlackRock receiving Bitcoin IOUs from Coinbase, a major cryptocurrency exchange. A well-known crypto analyst has proposed a theory suggesting that the asset manager could be selling Bitcoin (shorting) using these IOUs, which might explain Bitcoin’s price decreases at certain points.

BlackRock And Bitcoin ETFs Saved Bitcoin Price

In a previous article, Balchunas argued that BlackRock and Bitcoin ETFs had often prevented the BTC price from crashing dramatically. This was said as a counterpoint to claims suggesting traditional investors were responsible for every coin drop. He further explained that such beliefs arise because it’s easier for people to blame the ETFs instead of accepting that native Bitcoin holders could be the ones selling.

As an analyst, I’ve come to believe that the sellers causing turbulence in Bitcoin’s price might not be traditional investors as one might assume. Instead, it seems like the natives of Bitcoin itself could be the ones creating this volatility, as suggested by Eric Balchunas. Moreover, recent findings from Ali Martinez have highlighted how BTC miners sold approximately 30,000 BTC within a span of three days, supporting this notion that the instability in Bitcoin’s price could be originating from within its own ranks.

#Bitcoin miners have sold over 30,000 $BTC in the last 72 hours, worth around $1.71 billion!
— Ali (@ali_charts) September 11, 2024

It’s noteworthy to add that Bitcoin ETFs played a substantial role in pushing the BTC price to an unprecedented high of $73,000 in March this year. Upon debut, these funds experienced substantial influxes of capital, which in turn boosted the Bitcoin ecosystem and caused its value to surge. Notably, BlackRock has maintained its Bitcoin holdings, recording merely three daily outflows since its launch in January.

Coinbase Helping TradFi To Supress Bitcoin

It’s been speculated that Coinbase is issuing Bitcoin promissory notes to BlackRock, which some believe may contribute to a decrease in Bitcoin’s price. Notably, crypto analyst Tyler Durden has been among those making these claims. In simpler terms, the analyst suggested earlier this year that if Coinbase provides BlackRock with these notes, it allows them to borrow vast amounts of Bitcoin for short-selling without having to prove they have the equivalent amount in their possession.

As a researcher, I made it clear that I scrutinized the entire blockchain, a transparent and accessible record where anybody can conduct the same analysis – to clarify, I discovered that Coinbase is issuing IOUs on behalf of Blackrock.

Now everyone is waking up and hopefully Coinbase has a bank run.

Baldilocks is anti bitcoin.

— Tyler (@TylerDurden) September 14, 2024

To strengthen his argument that a prominent global asset manager could be artificially influencing Bitcoin’s price using Coinbase as an intermediary, Durden pointed to data from Cryptoquant. He suggested that Coinbase, the largest buyer and seller in this market range, was involved in every significant market peak and trough. Furthermore, he predicted that this asset manager could ultimately cap the market, causing a crash or a major market downturn at some point in the future.

In response to Durden’s accusations, Coinbase CEO Brian Armstrong explained the process of ETF minting and burning, confirming that it was transparent and took place on the blockchain. He emphasized that there was no evidence of wrongdoing as their activities were audited and the results of these audits are accessible to all. Furthermore, Armstrong clarified that they do not have authorization to disclose the addresses of their institutional clients, such as BlackRock, for privacy reasons.

Currently, Bitcoin is being traded at approximately $60,000. According to Coingape’s latest report, potential interest rate reductions from the Fed this week may boost the value of Bitcoin. Historically, similar macroeconomic events have been favorable for Bitcoin.

Read More

2024-09-15 04:10