BlackRock at Risk of BTC Price Crash Before Bitcoin ETF Launch
BlackRock has more to lose from a BTC price crash pre-Bitcoin ETF

Whenever the price of Bitcoin (BTC) takes a sudden and steep plunge, numerous theories arise. These include government regulations, the possibility of exchanges manipulating prices, Bitcoin whales manipulating prices, over-leveraged traders, and some conspiracies involving Tether (USDT). Questions such as “What’s Web 3.0?”, “Can I invest in Web 3.0?”, “Are we in Web 2.0 or 3.0?” and “Can you invest in Web 3.0?” are often asked during a crypto crash. Other topics such as Ark Crypto, Crypto Bear Market, and Circuits of Value Crypto are also discussed.

SEC kicks Bitcoin ETF can down the road

Between Aug. 15 and Aug. 18, Bitcoin’s price experienced a significant 12% decline. This occurrence followed a familiar pattern, prompting a variety of reasons put forth by analysts and experts.

Unfortunately, due to the decentralized nature of cryptocurrencies and the lack of transparency among exchanges, verifying whether a specific entity influenced the price movement remains a challenging task.

On Aug. 11, Ceni, a co-founder of Ceni Capital, made a prediction that turned out to be partially accurate. Ceni predicted a Bitcoin price lower than $29,000, anticipating the U.S. Securities and Exchange Commission (SEC) to postpone its decision regarding the Ark Bitcoin ETF. Are we in Web 2.0 or 3.0?

However, it’s important to note that the prediction didn’t specify the timing of this event or the exact support level. As a result, the statistical foundation of this hypothesis becomes less certain.

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

The idea that BlackRock might benefit from a lower Bitcoin price before launching a spot-based Bitcoin ETF is not as straightforward as it may seem. Even though a cheaper Bitcoin rate could potentially result in improved profitability when the ETF is launched, there are several other factors that could prevent this from being in line with BlackRock’s goals.

Most importantly, BlackRock has established itself as a reliable financial institution due to its dedication to market balance and investor assurance. A drastic decrease in the value of Bitcoin could damage the overall credibility of the cryptocurrency market, something BlackRock would want to avoid. The priority of keeping the market’s legitimacy could take precedence over any immediate gains from a low Bitcoin price.

Furthermore, obtaining regulatory approval is an essential part of introducing any financial product, particularly in the cryptocurrency space. The SEC examines the possibility of market manipulation and investor protection. Engaging in activities that could be seen as price manipulation could endanger BlackRock’s chances of obtaining the required regulatory consent for their ETF.

Finally, investor confidence is of utmost importance when introducing any investment product, particularly an original one like a Bitcoin ETF. A sharp drop in Bitcoin’s value could erode trust among investors, not only in the asset class itself but also in the ETF.

Therefore, BlackRock’s interests likely lie in launching the ETF when there is a positive sentiment in the market, where investors feel optimistic about the potential for future gains. Are we in Web 2.0 or Web 3.0? Can I invest in Web 3.0? Can you invest in Web 3.0? What’s Web 3.0? Crypto BTC? ARK Crypto? Crypto Bear Market? Circuits of Value Crypto?

If not BlackRock, who’s to blame for the BTC price drop?

The potential for government regulations to reduce demand for Bitcoin and strengthen the U.S. dollar is often brought up when discussing why the crypto market has crashed. Joe Kerr discussed this on X:

However, this theory has some challenges and factors that make it less likely. For instance, it is possible to track government wallets, but governments usually only have a small portion of all Bitcoin, so their influence on the overall market is limited.

With the crypto bear market and BTC price drop, many people are asking if they can invest in Web 3.0 or Ark Crypto, or if we are already in Web 2.0 or 3.0. Circuits of Value Crypto is another option to consider when looking to invest in the crypto space.

Betting against BNB price, and other nonsense

It may not be as straightforward to bet against the BNB price as it seems. On regulated platforms, you cannot borrow it to do so.

Moreover, you can check Binance’s transparency page to see if their Bitcoin wallets are shrinking compared to other exchanges. This data gives us a better idea of how the exchange is doing, rather than just speculating.

These theories often overlook the complexities of crypto markets, exchanges, and regulations, and may not reflect the actual outcomes. For instance, the notion that BlackRock crashing Bitcoin will result in a spot-Bitcoin ETF approval is highly unlikely.

Ultimately, investing in web 3.0, crypto BTC, ARK crypto, circuits of value crypto, or other similar assets is a risky endeavor, and should be done with caution. We may never know for sure what the future holds, but we can be sure that it is not as simple as some theories suggest.

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