Misleading Report Causes Bitcoin Market Turmoil
A false report circulated by Cointelegraph on social media platform X and its Telegram channel caused a surge in the value of bitcoin against the U.S. dollar. The cryptocurrency briefly reached $29,900 per coin before plummeting to $28,100 once the news was debunked. Despite issuing an apology, Cointelegraph’s late response resulted in the liquidation of $78.92 million in short positions.
Liquidations and Losses
Data from Coinglass shows that within four hours, $71.36 million worth of BTC short positions were liquidated, along with $2.49 million in Solana (SOL) short positions. The $78.92 million erased represents 57% of the total short positions cleared out in the last 24 hours. Additionally, over $18 million worth of long positions in Ethereum (ETH) were also liquidated during this time.
Impact on Bitfinex
Following the exposure of the false news, short positions on Bitfinex significantly dropped, while long positions initially saw an increase before declining after the news was confirmed. The misleading report led to a large number of traders being liquidated, potentially affecting market speculation surrounding the actual SEC decision.
Hot Take: Fabricated News Sparks Volatility and Losses
Inaccurate reporting by Cointelegraph caused significant turmoil in the bitcoin market, resulting in losses for traders who had taken short positions. The impact was felt not only in bitcoin but also in other cryptocurrencies like Ethereum, XRP, BNB, and SOL. This incident highlights the importance of responsible journalism and timely corrections to prevent such market upheavals.
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