In a recent analysis, Eric Balchunas from Bloomberg highlighted the role of BlackRock and Bitcoin ETFs in preventing significant declines in BTC. Speculations suggested that BlackRock receives Bitcoin IOUs from Coinbase, potentially using them to short BTC and influence its market performance. Balchunas debunked the notion that traditional investors were solely responsible for the coin’s fluctuations, asserting that native HODLers also play a significant role in selling off BTC.
Additionally, the influx of funds into Bitcoin ETFs significantly pushed the coin to a new all-time high of $73,000 earlier this year. BlackRock’s minimal net outflows indicated a strong holding pattern following its launch. On a parallel note, there were concerns regarding Coinbase’s alleged issuance of IOUs to BlackRock, with claims that this practice could lead to price suppression.
Critics like Tyler Durden have raised suspicions about Coinbase’s collaboration with BlackRock in manipulating BTC prices. Durden pointed to data from Cryptoquant to support his claims, suggesting that Coinbase’s actions could influence market tops and bottoms. In response, Coinbase’s CEO Brian Armstrong clarified the transparency of ETF operations, emphasizing that the processes are audited and publicly available.
As Bitcoin trades around $60,000, speculations arise about potential market impacts following projected Fed rate cuts. Such macro events historically favor Bitcoin’s price movements, suggesting a positive outlook for the cryptocurrency. The narrative around BlackRock, Bitcoin ETFs, and Coinbase’s alleged practices continues to fuel discussions within the crypto community.