The cryptocurrency community has eagerly awaited approval of a Bitcoin exchange-traded fund (ETF) in the US, believing it could send prices skyrocketing. However, crypto influencer Alex Becker proposed an alternative theory – that asset management giant BlackRock plans to intentionally sink Bitcoin’s price with their highly-anticipated ETF application.
In a tweet to his 867,000 followers, Becker speculated that BlackRock knows their ETF has already “super pumped” Bitcoin’s price in anticipation. The “9000 IQ move” would be to short Bitcoin, use their influence to get the ETF rejected, triggering a massive price crash. BlackRock could then scoop up Bitcoin at low prices before refiling their ETF application later when there’s less hype.
While unproven, the theory highlights lingering suspicions about Wall Street’s motives in crypto markets. BlackRock has filed for a Bitcoin ETF through a partnership with Larry Fink’s crypto-focused venture capital firm Circle. As the world’s largest asset manager, BlackRock possesses immense financial resources to potentially move markets to its advantage.
In a follow-up tweet, Becker claimed he was “sort of” kidding, but found it suspicious that BlackRock is publicly telling people to buy Bitcoin right before their ETF goes live when they currently control the price. He compared BlackRock to a “comic book villain evil corporation archetype” that doesn’t “play fair,” fueling his skepticism.
However, SEC rejection of a Bitcoin ETF is far from guaranteed. Last week, Bloomberg Intelligence reported the odds of approval are now 90%. Other asset managers like Fidelity and SkyBridge Capital have applications pending, aiming to challenge naysayers concerned with crypto’s volatility. The SEC continues to assess whether the Bitcoin market has matured enough for an ETF product.
Regardless of BlackRock’s intentions, Alex Becker’s conspiratorial tweet underscores the unpredictable nature of cryptocurrency markets. With Bitcoin prices fluctuating based on anticipation of major SEC decisions, regulators wield tremendous influence over realized gains and losses. Perhaps this latest ETF saga will provide much-needed regulatory clarity to stabilize prices long-term.
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