- Speculation arises over Coinbase and BlackRock allegedly using Bitcoin IOUs to suppress BTC prices.
- Experts refute claims, arguing Bitcoin ETFs likely stabilize rather than manipulate the cryptocurrency’s price.
- Bitcoin miners, not traditional investors, contributed to recent BTC price declines, selling 30,000 BTC rapidly.
Rumors have emerged alleging that Coinbase, one of the largest cryptocurrency exchanges, may be writing Bitcoin IOUs for BlackRock, the world’s leading ETF issuer. This speculation has led to concerns that BlackRock is keeping Bitcoin’s price artificially low through its relationship with Coinbase.
As BlackRock is involved in Bitcoin spot ETFs, it allows investors to gain exposure to Bitcoin without directly purchasing the digital asset. Coinbase, acting as a trading agent, is reportedly facilitating these transactions, raising questions about whether real Bitcoins are being traded or merely IOUs.
<embed>https://x.com/bitcoinlfgo/status/1835022156897599764<embed>
Concerns About Bitcoin IOUs and Price Manipulation
The notion that BlackRock could be suppressing the price of Bitcoin stems from its use of Coinbase Prime to manage Bitcoin purchases for its ETF products. According to the allegations, BlackRock may not be purchasing actual Bitcoins but instead issuing IOUs, which would affect market activity.
However, no concrete evidence supports these rumors, leaving the issue as speculation. These concerns have sparked conversations about the potential for traditional financial institutions to influence Bitcoin’s price indirectly, especially through ETF-related activity.
Experts Push Back on Bitcoin ETF Concerns
In response to these speculations, several analysts have expressed skepticism about the claims. Nate Geraci, president of ETF Store, believes these concerns arise from a misunderstanding of how ETF products function. He argues that Bitcoin spot ETFs do not work in a way that would allow for such price suppression.
Further supporting this view, Bloomberg analyst Eric Balchunas suggests that Bitcoin spot ETFs, such as BlackRock’s, have played a role in stabilizing Bitcoin’s price during market downturns. He attributed recent price volatility to actions by Bitcoin miners and native holders rather than traditional investors.
Bitcoin Miners and Price Volatility
Balchunas’ claims were supported by recent market data showing that Bitcoin miners had sold over 30,000 BTC in a short period, contributing to price declines. This points to internal market factors rather than external manipulation as the cause of the price shifts.
Despite the concerns, Bitcoin continues to trade actively, with a current price of $60,217.46 and a 24-hour trading volume of over $11.5 billion. These figures highlight the ongoing volatility within the market, which continues to fuel debate over the role of traditional financial institutions in the cryptocurrency space.
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
