According to Bloomberg analyst Eric Balchunas, BlackRock and the Bitcoin ETFs have saved the price of Bitcoin from significant declines on multiple occasions. He suggests that the involvement of the world’s largest asset manager, BlackRock, and the growth of Bitcoin ETFs have played a major role in preventing larger price corrections.
BlackRock’s Influence and Bitcoin IOU Rumors
Balchunas’ comments follow rumors that BlackRock would receive Bitcoin IOUs (IOUs) from cryptocurrency exchange Coinbase. A noted crypto analyst suggested that BlackRock could use these IOUs to take short positions on Bitcoin, leading to price drops at various points.
ETFs Protect Bitcoin From Big Losses
In a post on X (formerly Twitter), Balchunas stated that BlackRock and the Bitcoin ETFs have repeatedly prevented the BTC price from “falling off the cliff.” The comment came as a response to theories that traditional investors are the cause of every Bitcoin price drop. According to him, many people unfairly scapegoat ETFs because it is hard to believe that the original HODLers would sell their Bitcoin.
However, Balchunas claims that it is these long-term holders who are responsible for the price drops, and not ETF investors. This claim is supported by popular Bitcoin analyst Ali Martinez, who revealed that Bitcoin miners recently sold over 30,000 BTC in just three days. According to Balchunas, this would show that the selling pressure is coming from within the Bitcoin community.
Bitcoin ETFs fuel price increases
In addition to preventing major price drops, Bitcoin ETFs have also played a major role in driving the BTC price to a new all-time high of $73,000 in March of this year. These funds attracted a lot of new capital, which drove the price of Bitcoin significantly higher. BlackRock has maintained a strong position in this regard, having only seen three days of net outflows since the launch of their ETF in January.
Coinbase and Price Manipulation Rumors
There are also rumors circulating that Coinbase is providing Bitcoin IOUs to BlackRock, which may have contributed to the price pressure. Crypto analyst Tyler Durden claims that Coinbase is the largest buyer and seller during critical market moments, which would allow BlackRock to manipulate the price. According to Durden, this could eventually lead to a correction or a major price drop in the market.
Coinbase CEO Brian Armstrong has responded to these allegations, clarifying how ETFs are processed and that everything is ultimately handled on-chain. Armstrong stressed that there is no manipulation and that all transactions are audited and public.
Currently, the Bitcoin price is hovering around $58,000, ahead of the US central bank, the Federal Reserve,’s interest rate decision on Wednesday. It is expected to cut the current interest rate from 5.25% to 5.50%.
Source: https://newsbit.nl/bloomberg-analist-blackrock-en-bitcoin-etfs-houden-btc-overeind/
