Are Coinbase and BlackRock manipulating the Bitcoin price?

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Last Updated on 17 September 2024 by CryptoTips.eu

A new conspiracy theory seems to emerge every weekend, but this time one that prompted an immediate response from Coinbase CEO Brian Armstrong, who immediately sought to correct it before the story got too big.

Some Internet users had posted a theory online that showed how BlackRock and Coinbase were in cahoots in recent months to keep the price of Bitcoin under control. Even Bloomberg analyst Eric Balchunas came to the rescue after the theory went viral.

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Manipulation

Whenever there are a few large market players who can manipulate the price of a particular commodity, it is natural that smaller players will claim that they are doing so. This of course happened in the past, but the large number of government agencies that control financial markets today makes this very difficult.

Yet it is true that BlackRock, the largest investment fund in the world, and Coinbase, the largest American crypto platform, are buying up big chunks of Bitcoin since the beginning of this year and the launch of the Bitcoin ETFs.

Eric Balchunas, the famous Bloomberg crypto analyst, recently calculated that the American boomers will become the largest Bitcoin Hodlers as from next year due to their investments in the various Bitcoin ETFs.

Theory

The conspiracy theory that went viral goes like this: BlackRock waits until Bitcoin reaches $70k, then takes massive shorts until the price drops to $50k, at which point it starts buying again. Coinbase, which participates in BlackRock’s Bitcoin ETFs, participates and both companies thus manipulate the market.

Coinbase CEO Brian Armstrong saw the story quickly go viral and responded to the posters, claiming it was rubbish.

Eric Balchunas, the well-known crypto analyst from Bloomberg, also weighed in, saying that Bitcoin is simply too big to be influenced by two players.

According to Eric, it’s just the smaller market players taking their profits every time Bitcoin hits $70k and that’s why crypto has been moving quite sideways over the last few months.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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