Bitcoin’s ETF Approval Misinformation Causes Market Turbulence
Bitcoin’s Price Surges Due to False Reports
On Monday, Bitcoin experienced a sudden surge to $30,000, driven by misleading information regarding the approval of BlackRock’s iShares spot Bitcoin ETF application by the U.S. Securities and Exchange Commission (SEC). The spread of this misinformation, especially through social media platforms like Cointelegraph, led to approximately $100 million worth of liquidations as investors tried to capitalize on the unexpected price spike.
BlackRock Clarifies the Facts
This false news was subsequently refuted by BlackRock, a prominent asset manager with $9 trillion in assets under management, and Fox Business reporter Eleanor Terret. BlackRock clarified that their application is still under review by the SEC, a fact further supported by the SEC’s official website. The market’s reaction was also influenced by a court decision favoring Grayscale’s GBTC to spot ETF conversion and the anticipation of the GBTC to spot ETF countdown, which is beneficial for traditional investors.
Cointelegraph Takes Responsibility
In response to the incident, Cointelegraph issued an apology for spreading the misinformation and initiated an internal investigation. The impact of this false news on market liquidations became evident through Coinglass data, which showed that within an hour, $105 million worth of positions, including $73 million in shorts and $32 million in longs, were liquidated.
Bitcoin’s Corrected Price and Trading Volume
By late morning on Monday, Bitcoin corrected to $28,192.22, with a 24-hour trading volume that increased by 366.20% to $24.39 billion. This correction represented a 4.90% spike over the past 24 hours and a 2.6% gain in the last seven days. According to CoinMarketCap data, Bitcoin’s total circulating supply is 19.52 million tokens, with a market cap of $550.69 billion.
Fidelity’s Bitcoin ETF Proposal Under Consideration
Another Bitcoin ETF proposal, this time from Fidelity, is currently under consideration by the SEC. The cryptocurrency market continues to respond to developments in regulation and acceptance among traditional investors.
This article provides an in-depth analysis of the recent market turbulence caused by false reports of Bitcoin ETF approval. It offers insights into the impact on Bitcoin’s price, market liquidations, and the clarification provided by BlackRock. The article also highlights the ongoing regulatory considerations, such as Fidelity’s Bitcoin ETF proposal, and the importance of verifying information before reacting to market rumors.