Rumors of BlackRock Bitcoin ETF Approval Cause Market Frenzy
The cryptocurrency market experienced a frenzy on Monday after false rumors circulated that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock’s spot Bitcoin exchange-traded fund (ETF) application. These rumors quickly spread from a post on a microblogging platform and even made their way onto Bloomberg Terminal. However, they were soon dispelled when a BlackRock executive clarified that the application was still under review. Nevertheless, cryptocurrency prices had already reacted to the news.
Bitcoin Price Volatility and Liquidations
Bitcoin’s price surged above $30,000 as the rumors began to spread but quickly dropped once BlackRock confirmed that the ETF was still under review. This price action resulted in over $100 million in liquidations within just one hour. Short positions worth over $73 million were liquidated when the price started surging, while long positions saw nearly $32 million in liquidations.
Whale Loses $50,000 in 10 Minutes
A cryptocurrency whale spent 613,201 USDC tokens to buy 20.5 BTC based on the false rumors. However, after it was revealed that the news was fake, the whale sold the BTC for 563,970 USDC, resulting in a loss of nearly $50,000 within just 10 minutes.
BlackRock CEO Comments on Crypto Interest
Despite the pump and dump effect on Bitcoin’s price, BlackRock CEO Larry Fink acknowledged that the rally demonstrated “pent up interest in crypto.” He noted that clients from around the world have expressed their need for cryptocurrency. Other industry experts have also expressed bullish sentiments towards Bitcoin’s market capitalization potential.
Hot Take: Market Reacts to False Rumors of BlackRock Bitcoin ETF Approval
The cryptocurrency market experienced significant volatility and liquidations as rumors falsely suggested that the SEC had approved BlackRock’s Bitcoin ETF application. These rumors quickly spread, causing Bitcoin’s price to surge above $30,000 before dropping once the truth was revealed. A cryptocurrency whale lost nearly $50,000 in just 10 minutes due to these false rumors. Despite the market frenzy, BlackRock CEO Larry Fink sees it as an indication of pent-up interest in crypto. The incident highlights the impact of misinformation on cryptocurrency markets and the need for caution when reacting to rumors.
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