The fake BlackRock ETF news caused this crypto-well to lose big
According to on-chain data, a wealthy crypto investor lost $49,000 in a bad trade following false reports that BlackRock had received approval for its Bitcoin ETF application.
According to analysts from Loonchain on Monday, an anonymous whale traded $613,201 in USDC for 20.5 Wrapped Bitcoin (WBTC) 1 inch shortly after the initial report dropped. First, the price of Bitcoin rose above $29,000 in light of the news. However, after Blackrock sources confirmed that the news was fake, the price of Bitcoin quickly dropped to $28,000. 10 minutes after buying it, the whale immediately sold all of his BTC into dollars, receiving $563,970 USDC in return. That's a $49,000 loss in ten minutes. Data from Glassnode shows that the price volatility surrounding the event caused hundreds of millions of dollars in bitcoin futures to flow out of open BTC interest in one hour. According to Coinglass, nearly 40,000 crypto traders have been ripped off in the past 24 hours. BlackRock's approval would mark the first place for a Bitcoin ETF to reach US investors, who many suspect will receive billions of dollars from institutions into BTC. In October, a former Blackrock executive predicted that a Bitcoin ETF would be approved in April 2024. Bloomberg ETF analysts also put a 90% chance of such an ETF at the beginning of next year.
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