cryptonews.com
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.
The misleading information, originally shared on social platform X, led to a flurry of trading activity resulting in about $100 million in trading liquidations within just one hour.
Misleading Information's Immediate Impact on Bitcoin Price
The fake announcement was powerful enough to push Bitcoin's price 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 the liquidation of short positions amounting to $81 million. When the Bitcoin price corrected itself and dropped to $28,000, long positions worth $31 million were also liquidated.
For those unaware, liquidation in trading refers to the forced closure of a trader's leveraged position when their initial margin is partially or fully depleted.
A spokesperson from BlackRock clarified that "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 in an interview with Fox Business.
"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) has not approved any spot Bitcoin ETFs. The regulatory body's website doesn't list any such approvals, effectively debunking the fake announcement related to BlackRock's Bitcoin ETF.
Interestingly enough, the SEC recently decided not to contest its defeat 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, experts were quick to voice their skepticism, contributing to the currency's return to a lower value.