HODLers, Not ETFs, Responsible for Bitcoin Price Drops: Analyst Debunks Coinbase Rumour
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
In the ongoing debate over Bitcoin’s price drops, Bloomberg analyst Eric Balchunas has presented a solid counterargument to a widely circulated theory. Speculation had suggested that BlackRock, the world’s largest asset manager, was responsible for suppressing Bitcoin’s price through IOUs issued by Coinbase, a leading crypto exchange.
However, Balchunas argues that the real culprits behind Bitcoin’s declines are not institutional investors but rather native Bitcoin holders, or “HODLers,” who are selling off their holdings.
While some have blamed traditional finance (TradFi) players like BlackRock for these declines, Balchunas contends that it is, in fact, long-term Bitcoin investors causing the sell-offs.
Rumors suggesting that Coinbase is issuing Bitcoin IOUs for BlackRock have fueled concerns about potential market manipulation.
The speculation posits that through its ETF offerings, BlackRock could short Bitcoin by borrowing through Coinbase without holding an equivalent amount of real Bitcoin on a 1:1 basis.
Crypto analyst Tyler Durden popularized this theory and pointed to Coinbase’s transactions as evidence that the exchange is helping TradFi suppress Bitcoin prices.
Durden’s theory goes even further, alleging that Coinbase’s actions have directly impacted Bitcoin’s price at various market tops and bottoms.
His deleted tweet said this:
“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
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