Bloomberg analyst Eric Balchunas has asserted that BlackRock and the Bitcoin ETFs saved the BTC from massive decline. The analyst’s statement related to rumors that the world’s largest asset manager receives Bitcoin IOUs from the Coinbase crypto exchange. A popular crypto analyst has outlined a theory suggesting that the asset manager may be shorting BTC with these IOUs, leading to the coin’s decline at different times.
BlackRock And Bitcoin ETFs Saved Bitcoin Price
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.”
#Bitcoin miners have sold over 30,000 $BTC in the last 72 hours, worth around $1.71 billion! pic.twitter.com/OuaiIo7QZ9
— Ali (@ali_charts) September 11, 2024
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.
I told everyone I went through the chain – I mean it’s a public ledger literally anyone can do it – Coinbase are writing IOUs for Blackrock.
Now everyone is waking up and hopefully Coinbase has a bank run.
Baldilocks is anti bitcoin. pic.twitter.com/GsnTSg0y6Q
— Tyler (@TylerDurden) September 14, 2024
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.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, Boluwatife is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
