Today, Bitcoin’s price experienced a swift rise from $27,900 to $30,000 following a false announcement regarding BlackRock’s Bitcoin spot ETF approval.
, originally shared on social platform X, led to a flurry of trading activity resulting in about within just one hour.
Misleading Information’s Immediate Impact on Bitcoin Price
The fake announcement was powerful enough to push considerably upward, although it was removed approximately 30 minutes after its initial posting. But by that time, the damage had been done.
The cryptocurrency’s price had already been affected, with traders making decisions based on the misleading information.
CoinGlass, a data analytics platform, shows that the abrupt price increase to $30,000 led to . When the Bitcoin price corrected itself and dropped to $28,000, long positions worth $31 million were also liquidated.
For those unaware, in trading refers to the forced closure of a trader’s leveraged position when their initial margin is partially or fully depleted.
“The iShares Bitcoin ETF application is still under review by the SEC.”
CEO of BlackRock, Larry Fink, offered a different perspective on the Bitcoin price movement .
“This rally today is way beyond the [bitcoin spot ETF] rumor. The rally today is about a flight to quality,” Fink said.
SEC’s Stance on Bitcoin ETFs Remains Unchanged
As of now, the U.S. Securities and Exchange Commission (SEC) . doesn’t list any such approvals, effectively debunking the fake announcement related to BlackRock’s Bitcoin ETF.
Interestingly enough, the in a lawsuit against Grayscale, a move that many believe could potentially lead to Grayscale’s Bitcoin Trust to transition into a spot ETF.
The rapid price movement in Bitcoin led to considerable discussion among market analysts. After the price hike and subsequent decline, , contributing to the currency’s return to a lower value.