Bitcoin Whale Loses $49,000 on Fake BlackRock Approval News
An anonymous whale in the crypto market recently suffered a loss of $49,000 due to false reports about BlackRock receiving approval for its Bitcoin ETF application. The incident was revealed through on-chain data analysis by Lookonchain analysts. The whale traded $613,201 in USDC for 20.5 Wrapped Bitcoin (WBTC) using 1Inch right after the initial report surfaced.
Initially, Bitcoin’s price surged above $29,000 following the news. However, when it was confirmed by sources at BlackRock that the news was fake, Bitcoin’s price quickly dropped back to $28,000.
The whale sold all of the BTC back into dollars just ten minutes after the purchase but received only $563,970 USDC in return. This resulted in a loss of $49,000 within a short span of time.
According to Glassnode data, the price volatility surrounding this event caused hundreds of millions of dollars in Bitcoin futures open interest on BTC to be liquidated within an hour. Furthermore, Coinglass reported that nearly 40,000 crypto traders were liquidated in the past 24 hours.
Potential Impact and Outlook
The approval of a spot Bitcoin ETF by BlackRock would have been significant as it would have been the first one available to US investors. This development is expected to attract billions of dollars into BTC from institutional investors. A former Blackrock executive predicted that a spot Bitcoin ETF would be approved by April 2024, while Bloomberg ETF analysts estimate a 90% likelihood of approval by early next year.
Hot Take: Losses Due to False News Remind Crypto Investors to Verify Sources
The recent loss incurred by the Bitcoin whale serves as a reminder for crypto investors to exercise caution and verify news sources before making investment decisions. The volatile nature of the cryptocurrency market makes it vulnerable to manipulation and false information. It is crucial to rely on trusted sources and conduct thorough research to avoid falling victim to such incidents. By staying informed and practicing due diligence, investors can mitigate risks and make more informed choices in the crypto space.
By
By
By
By