According to Bloomberg analyst Eric Balchunas, BlackRock and Bitcoin ETFs have been key players in keeping Bitcoin’s price afloat during tough times. You might have noticed how Bitcoin often dodges those big price drops, and Balchunas suggests that this is no accident. The world’s largest asset manager, BlackRock, along with the expanding presence of Bitcoin ETFs, has been a stabilizing force, helping to prevent sharper declines.
ETFs Are Helping Shield Bitcoin from Big Losses
Balchunas recently shared on X (formerly Twitter) that BlackRock and Bitcoin ETFs have repeatedly stepped in to save Bitcoin’s price from “the abyss.” His words push back against the common idea that traditional investors are behind every Bitcoin price dip. Many people tend to blame ETFs, thinking these new financial products are the cause of market volatility. But Balchunas argues that the real culprits are often overlooked.
I get why these theories exist and ppl want to scepegoat the ETFs. Bc it is too unthinkable that the native HODLers could be the sellers. But they are. The call is coming from inside the house. All the ETFs and BlackRock have done is save btc’s price from the abyss repeatedly.
— Eric Balchunas (@EricBalchunas) September 14, 2024
Interestingly, Balchunas points out that it’s actually the long-term holders, not the ETF investors, who are often selling when prices drop. This claim is backed by Bitcoin analyst Ali Martinez, who recently highlighted that Bitcoin miners sold more than 30,000 BTC in just three days. Obviously, selling pressure sometimes comes from within the Bitcoin community, rather than from traditional financial players.
#Bitcoin miners have sold over 30,000 $BTC in the last 72 hours, worth around $1.71 billion! pic.twitter.com/OuaiIo7QZ9
— Ali (@ali_charts) September 11, 2024
Bitcoin ETFs Also Fuel Price Gains
ETFs aren’t just about preventing losses; they’ve also been fueling price increases. Earlier this year, Bitcoin hit a high of $73,000 in March, and Bitcoin ETFs played a key role in that rise. These funds brought in a wave of new capital, driving prices up. BlackRock’s involvement has been consistent, and despite launching their ETF in January, they’ve only seen net outflows on three days. The steady inflow of capital has provided strong support for Bitcoin’s price.
Right now, Bitcoin is trading around $58,000, and all eyes are on the upcoming interest rate decision by the U.S. Federal Reserve this Wednesday. Many are expecting a rate cut from the current range of 5.25% to 5.50%, which could impact market sentiment.
Follow us at HowToBuyBitcoin.org for all the latest about Bitcoin.