Bitcoin Price Surges Above $28,000 Amid False ETF Approval Report
The price of Bitcoin reached over $28,000 on Monday after a false report claimed that BlackRock’s proposed spot Bitcoin ETF had gained approval. The inaccurate information caused a 5% spike in Bitcoin’s price, briefly approaching the $30,000 mark. The report originated from a Cointelegraph tweet that falsely stated “SEC approves iShares Bitcoin spot ETF.” Traders who bought Bitcoin based on this tweet suffered losses when the news was debunked.
Volatility returned to the market, leading to large liquidations. In the past 24 hours, 40,723 traders were liquidated for a total of $182.4 million, with most liquidations being short positions. Bitcoin trades accounted for $100 million of these liquidations.
SEC Decides Not to Appeal Grayscale Ruling
The positive price action of Bitcoin above $28,000 followed the U.S. Securities and Exchange Commission’s (SEC) decision not to appeal a recent court ruling regarding Grayscale. This ruling could require the SEC to review Grayscale’s application for a spot Bitcoin ETF. XBTO Global CEO Philippe Bekhazi believes that this decision is significant for the crypto industry and predicts that the approval for a Bitcoin ETF will happen soon.
New Possibilities for Institutional Adoption of Crypto
Bekhazi suggests that once the SEC approves a Bitcoin ETF, it will open up new opportunities for sovereign funds, pension funds, IRAs, 401k plans, and other institutions interested in digital asset investment. He anticipates that the approval may come in the first quarter of next year and expects more applications to be approved in 2024, promoting institutional adoption of cryptocurrencies.
At 1:00 p.m. ET, the price of Bitcoin was $28,054, showing a 4.8% increase over the past 24 hours.
Hot Take: Positive Market Response to Potential Bitcoin ETF Approval
The false report of a spot Bitcoin ETF approval caused significant volatility in the market, leading to both gains and losses for traders. However, despite the debunked news, Bitcoin managed to maintain support above $28,000. The SEC’s decision not to appeal the Grayscale ruling suggests a positive outlook for the future approval of a Bitcoin ETF. This could unlock new investment opportunities for institutional investors and contribute to further mainstream adoption of cryptocurrencies.
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