Bitcoin surges to $30k amid fake spot ETF news.
Bitcoin rises to $30k amid fake spot ETF news. BlackRock Confirms Position Bitcoin ETF Application Remains Under Review More than $130 million worth of shorts were released as the price of Bitcoin hit $30,000 on Monday.
The relatively quiet crypto market went into a frenzy for a few minutes on Monday when news broke that the Securities and Exchange Commission (SEC) had approved the first Bitcoin ETF.
The price of Bitcoin rose more than 10% in a short period of time as major crypto news accounts caught on to the news, with BTC rising to $30,000 on crypto exchange Coinbase. This was Bitcoin's highest level since August 9.
Spot Bitcoin ETF approval was ‘false'
First, Fox Business reporter Eleanor Terrett posted on her X account that BlackRock's iShares Bitcoin ETF was disapproved. “The application is still under review,” he said, citing a statement from the $9 trillion asset manager.
Bloomberg and the Wall Street Journal cited statements from BlackRock that the ETF application was under review. The SEC also found the reports to be false.
🚨 NEW: @SECGov confirmed the report by @Cointelegraph was wrong.
— Eleanor Terrett (@EleanorTerrett) October 16, 2023
The SEC has recently delayed a decision on all applications for spot Bitcoin EFTs before it. The regulator, however, did not appeal the court's ruling in favor of Greyscale regarding the conversion of GBTC to spot ETFs. As such, the market's reaction over the weekend and early morning benefited from sentiment that approval of the Bitcoin ETF was more likely.
Apart from GBTC, the crypto market has been enthusiastic about other proposals that include BlackRock and Fidelity to separate the ETF count. For one, the product is expected to provide more exposure to BTC for traditional investors – thereby driving capital flows into the market. Experts say the next bull market could benefit greatly from this.
Could this explain the reaction to today's news? Originally posted on crypto publication X's account, the claim spread like wildfire, attracting massive buy page pressure. Although the post was deleted as fake news, could it be a leak that jumped the gun?
Meanwhile, Cointelegraph has apologized for the “tweet” and is said to be conducting an internal investigation into what happened.
We apologize to Twitter for spreading inaccurate information about the BlackRock Bitcoin ETF.
An internal investigation is currently underway. We are committed to transparency and will share the results of the investigation with the public once…
— Cointelegraph (@Cointelegraph) October 16, 2023
More than $100 million was written off.
As fake news spread online, Bitcoin skyrocketed, and its price plummeted when more verified reports revealed that it was fake news. Total liquidity jumped over 280% in the last 24 hours.
More than $100 million worth of shorts were released amid the news, sending bitcoin prices skyrocketing. According to data from Coinglass, by the time BTC hit $30k, it had more than $112 million in liquidity. There were more than $78 million in shorts and $34 million in longs, including more than $64 million for BTC.
