Bitcoin started the week with a decline, and there are different theories about the reasons for this decrease. Some cite the assassination of Donald Trump, while others claim that Coinbase provided Bitcoin IOUs to BlackRock through cbBTC, thus causing the price drop.
Reasons for Bitcoin's Decline
Despite continuing allegations against BlackRock and Coinbase, Bloomberg ETF analyst Eric Balchunas refuted these claims.
Position of Bloomberg Analyst
Balchunas said the decline in Bitcoin was not caused by BlackRock or spot ETFs, but by long-term Bitcoin holders selling.
Opinion of ETF Store CEO
Like Balchunas, ETF Store CEO Nate Geraci also denied the Coinbase BlackRock claims. In his X post, he noted that Coinbase holds a 1:1 ratio of Bitcoin to physical ETFs, ensuring the underlying asset is properly backed. 'People who repeat these kinds of claims don’t understand how ETFs work,' Geraci said, likening the situation to similar claims made when gold physical ETFs were launched.
Thus, according to analysts, the decline in Bitcoin's price is due to long-term holders selling, rather than external manipulation by BlackRock or ETFs.
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