BlackRock And Bitcoin ETFs Shielded BTC From Massive Drops — Analyst

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As a seasoned crypto investor with over a decade of experience navigating the rollercoaster ride that is the cryptocurrency market, I find myself both intrigued and cautious regarding the recent allegations and counterclaims surrounding BlackRock, Coinbase, and Bitcoin.

According to Bloomberg analyst Eric Balchunas, BlackRock and Bitcoin ETFs have frequently prevented catastrophic drops in the cryptocurrency’s value.

As a market analyst, my observations align with rumors suggesting that BlackRock might be leveraging Coinbase’s Bitcoin IOUs for strategic market manipulation. This could potentially involve selling Bitcoin (BTC) to maintain control over the market, possibly leading to price drops.

Typically criticized for Bitcoin’s drops, Balchunas argues that conventional investors have in fact contributed to maintaining its price stability. He suggests that many accusations stem from disbelief that major Bitcoin investors would liquidate their holdings.

Crypto expert Ali Martinez demonstrated that miners sold more than 30,000 Bitcoins in just three days, suggesting there’s significant selling pressure coming directly from the Bitcoin mining community.

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

Alleged Price Suppression Role Of Coinbase

As a crypto investor, I’ve come across rumors suggesting that Coinbase could potentially be aiding BlackRock in market manipulation through the issuance of Bitcoin IOUs. Analyst Tyler Durden posits that BlackRock can short Bitcoin without directly holding the cryptocurrency, thanks to these IOUs, effectively bypassing the need for a 1:1 ratio of real coins.

As a crypto investor, I found myself closely analyzing the market trends, and after reviewing Coinbase’s actions, I came to the realization that their moves played a significant role in the volatile swings experienced by Bitcoin.

BlackRock And Bitcoin ETFs Saved BTC Price, Bloomberg Analyst Claims
— John Morgan (@johnmorganFL) September 15, 2024

Coinbase’s Defense And Transparency

In response, Brian Armstrong, the head of Coinbase, stated that BlackRock does not receive exclusive privileges regarding Bitcoin lending permissions. Instead, Coinbase handles the creation and destruction of ETF shares transparently through regular, public audits on the blockchain.

Armstrong emphasized that confidentiality clauses keep Coinbase from disclosing the cryptocurrency wallets of their institutional clients as a protective measure.

BlackRock And Bitcoin ETFs Shielded BTC From Massive Drops — Analyst

Bitcoin: Implications And Debates

The unconfirmed claims about Bitcoin promises (IOUs) and suspicions about market manipulation could potentially harm the trust investors have in BlackRock and Coinbase. However, since Coinbase is a licensed, audited organization, this status may serve to alleviate any negative sentiments.

The dispute about Coinbase’s wrapped Bitcoin (cbBTC) draws attention to arguments about centralized versus distributed assets. Tron founder Justin Sun criticized cbBTC’s lack of proof of deposit, audits, and ability to freeze balances, likening it to a centralized, “confiscatable” asset.

No Special Treatment To BlackRock

Coinbase denies allegations of providing preferential Bitcoin borrowing to BlackRock. Armstrong reaffirmed the company’s transparency and compliance while clarifying cbBTC. As the industry grapples with centralization concerns, Coinbase’s response will shape market sentiment.

Currently, Bitcoin (BTC) is fluctuating between approximately $58,000 and $59,000. Financial analysts anticipate that potential rate reductions by the Federal Reserve, set for the following week, could boost Bitcoin’s value positively.

Earlier, these large-scale shifts had a bullish tone and could potentially indicate optimistic signals for the leading cryptocurrency.

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2024-09-16 15:42