2023-09-07 00:15:40
© Reuters. BlackRock Is Manipulating Bitcoin Price, Says Expert
CriptoFácil – Cryptocurrency analyst Daan de Rover, also known as Crypto Rover, alleges that asset manager BlackRock (NYSE:) is deliberately pushing the price of cryptocurrency down.
According to Rover, this strategy aims to obtain a more favorable buy position, in case the company gets approval to launch its Bitcoin spot ETF.
Rover bases his theory on the argument that if BlackRock receives approval for a Bitcoin spot ETF, it will require them to have real Bitcoin to back the fund. In this scenario, he presents two perspectives.
“First, they may have already purchased Bitcoin months ago when prices were at their lowest. The second possibility is that BlackRock is deliberately lowering prices to establish a more advantageous buying position for itself,” he said.
Rover bets on the second option, arguing that if BlackRock had already bought Bitcoin before, it would be interested in keeping prices high.
After all, a rise in prices, possibly driven by the approval of a Bitcoin ETF, would earn them more value relative to their original purchase price.
Analyst Crypto Rover is known for his work helping investors understand the cryptocurrency market by providing free educational content ranging from investment basics to advanced technical analysis.
Pressure on Bitcoin
According to Bitcoin-focused writer Mark Helfman, institutional investors rarely buy BTC directly in order to avoid exposure to legal and regulatory risk. Instead, they use escrow solutions to hide their activities.
Helfman mentions “big buyers and sellers” who “find a broker for a private sale and settle the transaction in lots”. These transactions take place outside the exchanges, at an agreed price different from the spot price stated on the exchange.
“Since Bitcoin is pseudonymous and you can create new wallets endlessly, plus brokers are not required to report private trades, it is difficult to know who is moving money where unless you use forensic technology or have an informant who know about the deal.”
As a result, purchases and sales often happen without affecting the price of Bitcoin, which means they can go unnoticed on a chart as they only buy the amount needed to not disturb the price.
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