Possibly both of the two. The balrog may have even been awoken by the Witch-King while he was fleeing Angmar, but this is a topic for another day.
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"And forth went Morgoth, and he was halted by the elves. Then went Sauron, who was stopped by a dog and then aged men. Finally, there came the Witch-King, who destroyed Arnor, but nobody seems to remember that."
-A History of Villains
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