BlackRock & Bitcoin ETFs Repeatedly Saved BTC Price, Claims Bloomberg Analyst Eric Balchunas

• Bloomberg analyst Eric Balchunas has argued that BlackRock and Bitcoin ETFs have been fundamental in stabilizing Bitcoin prices during critical moments.
• He suggests that the true cause of Bitcoin’s price fluctuations lies with the native Bitcoin investors, rather than institutional players.
• Accusations have emerged against Coinbase, claiming the platform assists BlackRock in suppressing Bitcoin’s market value.

Discover how BlackRock and Bitcoin ETFs have shaped Bitcoin’s market dynamics, and uncover the ongoing debate surrounding Coinbase’s role in price volatility.

BlackRock and Bitcoin ETFs: Guardians of Bitcoin’s Value?

Eric Balchunas, a seasoned analyst at Bloomberg, claims in a recent post that BlackRock and Bitcoin ETFs have been instrumental in preventing catastrophic declines in Bitcoin’s value. This commentary was in response to ongoing rumors that BlackRock, the world’s largest asset manager, leverages Bitcoin IOUs from Coinbase to manipulate the market. A theory circulating among crypto analysts posits that BlackRock might be using these IOUs to short Bitcoin, contributing to its price dips at various intervals.

The Role of Traditional Investors in Bitcoin’s Stability

Balchunas’s remarks highlight a counterintuitive perspective: traditional investors, often blamed for Bitcoin’s downturns, have actually helped stabilize its price. He indicates that many accusations towards these investors stem from the disbelief that core Bitcoin “HODLers” could be responsible for selling off the digital asset. Supporting his assertion, Bitcoin analyst Ali Martinez illustrated how miners offloaded over 30,000 BTC within three days, showcasing that significant selling pressure originates from within the Bitcoin community itself.

Coinbase’s Alleged Involvement in Bitcoin Price Suppression

Allegations have surfaced that Coinbase, a major cryptocurrency exchange, may be facilitating BlackRock’s market manipulation by issuing Bitcoin IOUs. Analyst Tyler Durden has been vocally critical, claiming that these IOUs allow BlackRock to borrow Bitcoin for shorting, without holding the actual coin in a 1:1 ratio. Durden’s scrutinization of public ledger data led him to conclude that Coinbase’s activities were pivotal in Bitcoin’s volatile market movements.

Coinbase’s Defense Against Allegations

In response to these serious allegations, Coinbase CEO Brian Armstrong has provided clarity on the ETF minting and burning process. He assured that these transactions are settled on-chain and are transparent, with regular audits available to the public. Armstrong also emphasized that Coinbase is bound by confidentiality agreements, preventing them from disclosing the addresses of their institutional clients, including entities like BlackRock.

Bitcoin Price Outlook

As of now, Bitcoin is trading around $60,000. Market analysts suggest that the upcoming rate cuts anticipated for next week might favorably impact Bitcoin’s price. Historically, such macroeconomic events have been bullish, hinting at a potential positive trend for the leading cryptocurrency.

Conclusion

In summary, while BlackRock and Bitcoin ETFs have played a critical role in maintaining Bitcoin’s price stability, internal selling pressures from Bitcoin natives cannot be ignored. The allegations against Coinbase raise important questions about market integrity and transparency. Against a backdrop of macroeconomic shifts, the future trajectory of Bitcoin remains an insightful topic for ongoing observation and analysis.