BlackRock and bitcoin ETFs, according to Bloomberg analyst Eric Balchunas, have… stopped disastrous falls in the value of the cryptocurrency.
This coincides with speculation that BlackRock is using Coinbase's bitcoin notes to control the market, shorting btc and perhaps causing price declines.
Balchunas, who is often blamed for bitcoin's crashes, argues that traditional investors have actually helped stabilise its price. He says many of the accusations stem from disbelief in the selling of assets by mainstream bitcoin investors.
Cryptocurrency analyst Ali Martinez showed that miners dumped over 30,000 btc in three days, indicating that considerable selling pressure is originating from within the bitcoin community itself.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>#bitcoin Miners have sold more than 30,000 twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>$btc In the last 72 hours, worth approximately $1.71 billion! image.twitter.com/OuaiIo7QZ9
— Ali (@ali_charts) twitter.com/ali_charts/status/1833835104583516327?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>September 11, 2024
Alleged Coinbase Price Suppression Feature
Claims have emerged that by issuing bitcoin IOUs, Coinbase could be helping BlackRock manipulate markets. Analyst Tyler Durden says BlackRock can short btc using these IOUs without holding the actual currency on a 1:1 basis.
Durden’s research into public data helped him come to the conclusion that Coinbase’s actions were important in btc’s erratic fluctuations.
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BlackRock and bitcoin ETFs saved btc price, Bloomberg analyst claimshttps://t.co/Pv2B3X5Ddf
—John Morgan (@johnmorganFL) twitter.com/johnmorganFL/status/1835122433184928155?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank”>September 15, 2024
Coinbase's defense and transparency
Coinbase CEO Brian Armstrong responded by denying BlackRock special access to btc lending rights. According to him, Coinbase clears ETF minting and burning on-chain under frequent public audits.
Armstrong stressed that confidentiality agreements prevent Coinbase from revealing the cryptocurrency addresses of institutional clients.
bitcoin: implications and debates
Unverified bitcoin notes and accusations of price manipulation could erode investor confidence in BlackRock and Coinbase. But Coinbase’s reputation as a regulated and audited company could help offset the unrest.
The row over Coinbase’s Wrapped bitcoin (cbBTC) brings attention to arguments over centralized versus distributed assets. Tron founder Justin Sun criticized cbBTC’s lack of proof of deposit, audits, and ability to freeze balances, comparing it to a centralized and “confiscatable” asset.
No special treatment for BlackRock
Coinbase denies allegations of granting preferential bitcoin loans to BlackRock. Armstrong reaffirmed the company’s transparency and compliance while clarifying cbBTC. As the industry grapples with concerns about centralization, Coinbase’s response will shape market sentiment.
At the time of writing this article, bitcoin (btc) is bitcoin” target=”_blank” rel=”noopener nofollow”>Seesaw between $58,000 and $59,000 Analysts expect that possible rate cuts by the Federal Reserve, scheduled for next week, will have a positive effect on btc.
Previously, these macroeconomic movements were bullish and could well give signals that can be interpreted positively for the flagship cryptocurrency.
Featured image from PlasBit, chart from TradingView
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