Fake News Triggers Whale to Make $5.7 Billion Bitcoin Futures Purchase
A recent fake news report about BlackRock obtaining approval for a Bitcoin spot exchange-traded fund (ETF) led to a massive $5.7 billion Bitcoin futures purchase by a whale. The false report, initially posted by Cointelegraph, caused a surge in trading activity and short liquidations.
Market resource CryptoQuant’s CEO, Ki Young Ju, confirmed that the market experienced $42 million in liquidations. However, Ju clarified that this market surge was not a traditional short squeeze, as the forced liquidation of short positions played a minor role.
The impact of the BTC ETF report was evident in the taker volume of trades executed immediately at market prices. Taker buy volume spiked to $5.7 billion, while taker sell volume surged to $5.3 billion, marking the highest taker volume recorded in the market in two years.
The False BTC ETF Report
The surge in market orders resulted from traders capitalizing on the false report about BlackRock’s ETF approval. Prominent crypto media outlet Cointelegraph tweeted about the U.S. SEC approving BlackRock’s iShares Bitcoin spot ETF application, leading to increased demand and an uptick in Bitcoin’s trade volume.
However, Fox Business Journalist Eleanor Terrett debunked the report, stating that BlackRock confirmed their ETF application was still under review. Despite Cointelegraph retracting the statement and apologizing, $84 million worth of shorts were liquidated as a result.
While there are claims of huge profits from BTC long trades during this period, these snapshots have not been verified and may simply be attempts at humor.
Hot Take: False Report Causes Whale to Make Massive Bitcoin Futures Purchase
A fake news report about BlackRock’s approval for a Bitcoin spot ETF had significant consequences in the crypto market. The false report led to a whale making a $5.7 billion Bitcoin futures purchase, triggering high trading activity and short liquidations.
Although the surge in market orders may not qualify as a traditional short squeeze, it resulted in the highest taker volume recorded in two years. Traders rushed to capitalize on the news, leading to increased demand and Bitcoin’s price rally.
However, the false report was quickly debunked, causing $84 million in shorts to be liquidated. It serves as a reminder of the impact that misinformation can have on the crypto market and emphasizes the need for accurate reporting and verification of news sources.
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