{"id":12936,"date":"2023-08-23T02:22:17","date_gmt":"2023-08-23T02:22:17","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=12936"},"modified":"2023-08-23T02:22:17","modified_gmt":"2023-08-23T02:22:17","slug":"blackrock-has-more-to-lose-from-a-btc-price-crash-pre-bitcoin-etf","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=12936","title":{"rendered":"BlackRock has more to lose from a BTC price crash pre-Bitcoin ETF"},"content":{"rendered":"<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/www.cryptoheretostay.com\/wp-content\/uploads\/2023\/08\/52eadbba-de7c-4e4b-a5a8-e2c96720372c.jpg\" \/><\/p>\n<p>Numerous theories emerge whenever the price of Bitcoin\u00a0takes a sudden and steep dive. The usual suspects include government regulations, the possibility of exchanges manipulating prices, Bitcoin (BTC)\u00a0whales manipulating prices, overleveraged traders and some conspiracies involving Tether (USDT).<\/p>\n<h2>SEC kicks Bitcoin ETF can down the road<\/h2>\n<p>Between Aug. 15 and Aug. 18, Bitcoin\u2019s price experienced a significant 12% decline. This occurrence followed a familiar pattern, prompting a variety of reasons put forth by analysts and experts. <\/p>\n<p>Unfortunately, due to the decentralized nature of cryptocurrencies and the lack of transparency among exchanges, verifying whether a specific entity influenced the price movement remains a challenging task.<\/p>\n<p>On Aug. 11, Ceni, a co-founder of Ceni Capital, made a prediction that turned out to be partially accurate. Ceni predicted a Bitcoin price lower than $29,000, anticipating the United States Securities and Exchange Commission (SEC) would\u00a0postpone its decision regarding the ARK Bitcoin exchange-traded fund (ETF).<\/p>\n<p lang=\"en\" dir=\"ltr\">SEC Delays Decision on Ark Invest\u2019s Spot Bitcoin ETF Application, Calls For Public Input-8 week delay for BlackRock to manipulate the market. 29k should break soon cheap stats for holders and institutional investors. pic.twitter.com\/pcBhOho0Ax<\/p>\n<p>\u2014 CENI\u2b1b\ufe0f(,) (@ceni0718) August 11, 2023<\/p>\n<p>However, it\u2019s important to note that the prediction didn\u2019t specify the timing of this event or the exact support level. As a result, the statistical foundation for this hypothesis becomes less certain. <\/p>\n<p>Nonetheless, Ceni has pointed to BlackRock as a potential instigator of Bitcoin\u2019s crash, a claim that warrants thorough investigation.<\/p>\n<h2>Spot Bitcoin ETF is not a short-term deal for BlackRock<\/h2>\n<p>The idea that BlackRock might benefit from a lower Bitcoin price before launching a spot Bitcoin ETF is not as straightforward as it may seem. While the concept of a lower Bitcoin price leading to increased profitability upon ETF launch might be intuitive, there are several reasons why this might not align with BlackRock&#8217;s broader interests.<\/p>\n<p>First and foremost, BlackRock has built a reputation as a respected financial institution based on its commitment to market stability and investor confidence. A sudden and substantial drop in Bitcoin\u2019s value could undermine the overall credibility of the cryptocurrency market, something BlackRock would aim to avoid. The priority of maintaining the market\u2019s legitimacy might outweigh any immediate gains resulting from a low Bitcoin price.<\/p>\n<p>Secondly, obtaining regulatory approval plays a critical role in launching any financial product, especially within the cryptocurrency domain. The SEC meticulously assesses the potential for market manipulation and safeguards for investor protection. Engaging in activities that could be construed as price manipulation could jeopardize BlackRock&#8217;s chances of securing the necessary regulatory approvals for its ETF offering.<\/p>\n<p>Lastly, instilling investor confidence is of paramount importance when introducing any investment product, particularly a novel one like a Bitcoin ETF. A sharp Bitcoin price drop could erode trust among investors, not only in the asset class itself but also in the ETF. <\/p>\n<p>Therefore, BlackRock&#8217;s interest likely lies in launching the ETF during a period of positive sentiment, where investors feel confident about the potential for future gains.<\/p>\n<h2>If not BlackRock, who&#8217;s to blame for the BTC price drop?<\/h2>\n<p>The next possibility often considered when trying to explain a drop in Bitcoin\u2019s price is the idea that the government will regulate the cryptocurrency sector. The motivation to regulate would be driven by a desire to reduce demand to make the U.S. dollar stronger. <\/p>\n<p>Usually, these theories suggest that steps would be taken to control stablecoins and exchanges that are located outside the United States. Market analyst Joe Kerr talked about this on X (formerly Twitter):<\/p>\n<p lang=\"en\" dir=\"ltr\">Tinfoil hat time:<\/p>\n<p>Sell Government Bitcoin to Coinbase to suppress price.<\/p>\n<p>Get Binance to defend BNB by selling their Bitcoin.<\/p>\n<p>Drain Binance\u2019s cheap Bitcoin and sell it to coinbase.<\/p>\n<p>Binance goes broke &amp; Coinbase has the majority of exchange Bitcoin (SSA req achieved).<\/p>\n<p>Approve\u2026<\/p>\n<p>\u2014 Joe Kerr\u26a1 (@Boomstick44) August 18, 2023<\/p>\n<p>While this theory is interesting, there are challenges and factors that make it seem less likely. First, it\u2019s possible to somewhat track government wallets, but analysts should remember that governments usually have only a small part of all the Bitcoin, so their influence on the whole market is limited.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin speculators are underwater on 88% of their BTC bags \u2014 Research<\/em><\/strong><\/p>\n<h2>Betting against the BNB price and other nonsense<\/h2>\n<p>Next, the idea of betting against the price of BNB (BNB) might not be as simple as it sounds. To bet against BNB, traders would need to borrow it, but they can\u2019t do that on platforms that follow regulations. <\/p>\n<p>Moreover, by checking Binance&#8217;s transparency page, a person can see in real-time whether the exchange&#8217;s Bitcoin wallets are getting smaller compared to other exchanges. <\/p>\n<p><em>Bitcoin balance on exchanges (total), in BTC. Source: Glassnode, @jimmyvs24<\/em><\/p>\n<p>This could suggest unusual things like the improper use of customer money or financial problems. Actual data from these observations is more important than just guessing, as it gives insight into how well the exchange is doing.<\/p>\n<p>Ultimately, most of these theories make assumptions and simplify things, ignoring how complex cryptocurrency markets, exchanges and regulations are. <\/p>\n<p>The real results could be very different from what\u2019s suggested, so while the public might never know the truth for sure, a person can at least dismiss such theories as BlackRock crashing Bitcoin before a spot Bitcoin ETF approval.<\/p>\n<p class=\"post-content__disclaimer\">This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/blackrock-lose-bitcoin-price-crash-btc-etf\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Numerous theories emerge whenever the price of Bitcoin\u00a0takes a sudden and steep dive. The usual suspects include government regulations, the possibility of exchanges manipulating prices, Bitcoin (BTC)\u00a0whales manipulating prices, overleveraged traders and some conspiracies involving Tether (USDT). SEC kicks Bitcoin ETF can down the road Between Aug. 15 and Aug. 18, Bitcoin\u2019s price experienced a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-12936","post","type-post","status-publish","format-standard","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12936","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12936"}],"version-history":[{"count":0,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/12936\/revisions"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}