False Rumors of BTC Spot ETF Approval Trigger Volatility
There was a surge of activity in the market when false news about the approval of a Bitcoin Spot Exchange-Traded Fund (ETF) by the US Securities and Exchange Commission (SEC) spread through the cryptocurrency community. The news initially reported that BlackRock’s iShares Bitcoin Spot ETF had received regulatory approval. However, Bloomberg analyst James Seyffart quickly cast doubt on the authenticity of the report, stating that he could not find any confirmation of the news at the time. BlackRock later confirmed that the application was still under review, proving the initial report to be false.
Market Reaction and Liquidations
The impact of this misinformation was immediately visible in the market. BTC experienced a brief surge from $27,800 to $30,000 as traders reacted to the purported ETF approval news. However, as the truth emerged, the market corrected itself, resulting in a wave of liquidations. According to data from Glassnode, within four hours, $113.75 million in long positions and $78.87 million in short positions were liquidated due to the volatility and sudden reversal caused by the false news.
Cointelegraph’s Apology and Investigation
Cointelegraph apologized for disseminating inaccurate information regarding the BlackRock Bitcoin ETF and announced an internal investigation to determine the source of the misinformation. The media outlet is committed to transparency and will share the findings with the public once the investigation is concluded within three hours.
False Breakout Fails To Dampen Bitcoin Profitable Streak
Despite the false breakout above $30,000, Bitcoin has still retained significant profits within 24 hours. It is currently trading at $28,100, which is $1,000 higher than the initial price before the fake news spread. This marks a 5.1% profit during this period.
Bitcoin’s profitability has also shifted from negative to positive figures across various time frames. In the past 7 days, it has recorded a 2.6% profit, and over 30 days, it has seen a 6.4% increase. The only slight decrease was in the past 14 days with a 0.4% decline.
Overcoming Obstacles and Bullish Momentum
Bitcoin managed to break through two critical moving averages: the 50-day MA at $27,150 and the 200-day MA at $27,030, after initially dropping below these thresholds. It also surpassed the $28,000 resistance level that previously acted as a significant barrier following the false breakout above this mark.
The sustainability of Bitcoin’s current price level and bullish momentum remains uncertain due to circulating rumors about the long-awaited ETF decision by the applicants and the US SEC.
Hot Take: The Impact of False News on Crypto Markets
The recent incident involving false news about the approval of a Bitcoin Spot ETF highlights the significant impact that misinformation can have on cryptocurrency markets. Traders reacted quickly to the news, causing a surge in Bitcoin’s price. However, when the truth emerged, the market corrected itself, leading to liquidations and volatility.
This incident serves as a reminder of the importance of verifying information before making investment decisions in crypto markets. It also emphasizes the need for transparency and accountability within media outlets reporting on cryptocurrency news. As crypto enthusiasts, it is crucial to stay informed and rely on reliable sources to avoid falling victim to false rumors that can disrupt the market.
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