BlackRock has more to lose from a BTC price crash pre-Bitcoin ETF

Numerous theories look whenever the terms of Bitcoin (BTC) takes a sudden and steep drop. The accustomed suspects see authorities regulations, the anticipation of exchanges manipulating prices, Bitcoin whales manipulating prices, over-leveraged traders, and immoderate conspiracies involving Tether (USDT).

SEC kicks Bitcoin ETF tin down the road

Between Aug. 15 and Aug. 18, Bitcoin's terms experienced a important 12% decline. This occurrence followed a acquainted pattern, prompting a assortment of reasons enactment distant by analysts and experts.

Unfortunately, owed to the decentralized quality of cryptocurrencies and the deficiency of transparency among exchanges, verifying whether a circumstantial entity influenced the terms question remains a challenging task.

On Aug. 11, Ceni, a co-founder of Ceni Capital, made a prediction that turned retired to beryllium partially accurate. Ceni predicted a Bitcoin terms little than $29,000, anticipating the U.S. Securities and Exchange Commission (SEC) to postpone its determination regarding the Ark Bitcoin ETF.

SEC Delays Decision connected Ark Invest’s Spot Bitcoin ETF Application, Calls For Public Input-8 week hold for BlackRock to manipulate the market. 29k should interruption soon inexpensive stats for holders and organization investors. pic.twitter.com/pcBhOho0Ax

However, it's important to enactment that the prediction didn't specify the timing of this lawsuit oregon the nonstop enactment level. As a result, the statistical instauration of this proposal becomes little certain.

Nonetheless, Ceni has pointed to BlackRock arsenic a imaginable instigator of Bitcoin's crash, a assertion that warrants thorough investigation.

Spot-based Bitcoin ETF is not a short-term woody for BlackRock

The thought that BlackRock mightiness payment from a little Bitcoin terms earlier launching a spot-based Bitcoin ETF is not arsenic straightforward arsenic it whitethorn seem. While the conception of a little Bitcoin terms starring to accrued profitability upon ETF motorboat mightiness beryllium intuitive, determination are respective reasons wherefore this mightiness not align with BlackRock's broader interests.

First and foremost, BlackRock has built a estimation arsenic a respected fiscal instauration based connected its committedness to marketplace stableness and capitalist confidence. A abrupt and important driblet successful Bitcoin's worth could undermine the wide credibility of the cryptocurrency market, thing BlackRock would purpose to avoid. The precedence of maintaining the market's legitimacy mightiness outweigh immoderate contiguous gains resulting from a debased Bitcoin price.

Secondly, obtaining regulatory support plays a captious relation successful launching immoderate fiscal product, particularly wrong the cryptocurrency domain. The SEC meticulously assesses the imaginable for marketplace manipulation and safeguards for capitalist protection. Engaging successful activities that could beryllium construed arsenic terms manipulation could jeopardize BlackRock's chances of securing the indispensable regulatory approvals for their ETF offering.

Lastly, instilling capitalist assurance is of paramount value erstwhile introducing immoderate concern product, peculiarly a caller 1 similar a Bitcoin ETF. A crisp Bitcoin terms driblet could erode spot among investors, not lone successful the plus people itself but besides successful the ETF.

Therefore, BlackRock's involvement apt lies successful launching the ETF during a play of affirmative sentiment, wherever investors consciousness assured astir the imaginable for aboriginal gains.

If not BlackRock, who's to blasted for the BTC terms drop?

The adjacent anticipation often considered erstwhile trying to explicate a driblet successful Bitcoin's terms is the thought that the authorities volition modulate the cryptocurrency sector. This could beryllium driven by reasons similar reducing request to marque the U.S. dollar stronger.

Usually, these theories suggest that steps would beryllium taken to power stablecoins and exchanges that are located extracurricular the U.S. Market expert Joe Kerr talked astir this connected X:

While this mentation is interesting, determination are challenges and factors that marque it look little likely. First, it's imaginable to somewhat track authorities wallets, but we should retrieve that governments usually person lone a tiny portion of each the Bitcoin, truthful their power connected the full marketplace is limited.

Related: Bitcoin speculators are underwater connected 88% of their BTC bags — Research

Betting against BNB price, and different nonsense

Next, the thought of betting against the terms of BNB mightiness not beryllium arsenic elemental arsenic it sounds. To stake against BNB, you'd request to get it, but you can't bash that connected platforms that travel regulations.

Moreover, by checking Binance's transparency page, you tin spot successful real-time whether their Bitcoin wallets are getting smaller compared to different exchanges.

Bitcoin equilibrium connected exchanges (total), successful BTC. Source: Glassnode/@jimmyvs24

This could suggest antithetic things similar the incorrect usage of lawsuit wealth oregon fiscal problems. Actual information from these observations is much important than conscionable guessing, arsenic it gives america penetration into however good the speech is doing.

Ultimately, astir of these theories marque assumptions and simplify things, ignoring however analyzable cryptocurrency markets, exchanges, and regulations are.

The existent results could beryllium precise antithetic from what's suggested, truthful portion we mightiness ne'er cognize the information for sure, we tin astatine slightest disregard specified theories arsenic BlackRock crashing Bitcoin earlier a spot-Bitcoin ETF approval.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken arsenic ineligible oregon concern advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.