BlackRock and Bitcoin ETFs Saved Bitcoin Price, Claims Bloomberg Analyst
Bloomberg analyst Eric Balchunas has recently made a statement that has sparked a lot of controversy in the cryptocurrency community. According to Balchunas, BlackRock and Bitcoin ETFs saved the BTC price from a massive decline. This statement was made in response to rumors that the world’s largest asset manager, BlackRock, receives Bitcoin IOUs from the Coinbase crypto exchange.
BlackRock and Bitcoin ETFs Repeatedly Saved the BTC Price
According to Balchunas, BlackRock and Bitcoin ETFs repeatedly saved the BTC price “from the abyss”. He made this statement to rebut arguments that traditional investors were to blame every time the coin declined. Balchunas added that he understands why people want to “scapegoat the ETFs” because it’s 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. A 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’s 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 Suppress 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.
Conclusion
In conclusion, the recent statements made by Bloomberg analyst Eric Balchunas and crypto analyst Tyler Durden have sparked a lot of controversy in the cryptocurrency community. While some argue that BlackRock and Bitcoin ETFs saved the BTC price from a massive decline, others believe that Coinbase’s IOUs to the asset manager are leading to price suppression. As the cryptocurrency market continues to evolve, it’s essential to remain vigilant and keep a close eye on the developments in the space.
FAQs
Q: What is a Bitcoin ETF?
A: A Bitcoin ETF is an exchange-traded fund that tracks the price of Bitcoin. It allows investors to gain exposure to the cryptocurrency without having to buy and hold the actual coins.
Q: What is Coinbase?
A: Coinbase is a US-based crypto exchange that allows users to buy, sell, and trade cryptocurrencies, including Bitcoin.
Q: Who is Eric Balchunas?
A: Eric Balchunas is a Bloomberg analyst who has been covering the cryptocurrency market for several years. He is known for his in-depth analysis and insights into the world of crypto.
Q: Who is Tyler Durden?
A: Tyler Durden is a crypto analyst who has been active in the cryptocurrency community for several years. He is known for his contrarian views and his ability to spot trends in the market.
Q: Why is BlackRock interested in Bitcoin?
A: BlackRock is interested in Bitcoin because it sees the potential for the cryptocurrency to disrupt the traditional financial system. The asset manager believes that Bitcoin has the potential to become a store of value and a medium of exchange, much like gold and fiat currencies.
Q: Will Coinbase’s IOUs affect the price of Bitcoin?
A: The impact of Coinbase’s IOUs on the price of Bitcoin is still unclear. Some argue that the IOUs could lead to price suppression, while others believe that they could actually drive up the price of Bitcoin.
