The post Bloomberg Analyst: Long-Term Holders, Not BlackRock, Behind Bitcoin Weakness appeared on BitcoinEthereumNews.com.

Bloomberg Analyst: Bitcoin Weakness Caused by Long-Term Holders, Not BlackRock Amid recent controversy in the cryptocurrency community regarding BlackRock’s alleged influence on Bitcoin prices through Coinbase’s cbBTC, Bloomberg’s senior ETF analyst, Eric Balchunas, has refuted these claims. According to Balchunas, the primary cause of Bitcoin’s recent price weakness is not related to BlackRock or the opacity of its Bitcoin spot ETF, but rather the selling activities of long-term Bitcoin holders, commonly referred to as “HODLers.” Key Points from Eric Balchunas 1. Long-Term Holders Selling: In response to allegations that BlackRock’s Bitcoin ETF is putting downward pressure on Bitcoin prices, Balchunas argued that many in the community are overlooking a more plausible explanation. “It’s inconceivable to them that native HODLers can become sellers. But this is actually happening,” Balchunas stated on X (formerly Twitter). He emphasized that long-term holders have been selling Bitcoin, which is driving price weakness. 2. ETF and BlackRock’s Role: Balchunas dismissed the notion that BlackRock and its Bitcoin ETF are to blame for the price decline. He stated that ETFs, including BlackRock’s, have actually helped stabilize Bitcoin’s price during downturns by pulling it back from lower levels, counteracting some of the market’s volatility. Rebuttal from Nate Geraci 1. Conspiracy Theories About ETFs: Nate Geraci, CEO of ETF Store, also weighed in on the debate, addressing the conspiracy theories surrounding Coinbase’s alleged involvement with BlackRock’s Bitcoin ETF. He pointed out that Coinbase holds Bitcoin on a 1:1 basis for the physical ETF, ensuring that the underlying asset is properly backed. Geraci likened the situation to similar claims made when gold physical ETFs were launched, stating, “People who repeat such claims do not understand how ETFs work.” 2. Clarifying the ETF Mechanism: Both Balchunas and Geraci emphasized that the operations of ETFs are transparent and subject to regulatory scrutiny,…

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Filed under: News - @ September 16, 2024 2:28 am