Following a tumultuous day marked by crypto-related misinformation, the U.S. Securities and Exchange Commission (SEC) took to social media to issue a stark warning.
The agency's message states: "Careful what you read on the internet. The best source of information about the SEC is the SEC."
This cautionary note came on the heels of inaccurate reports suggesting that the SEC had approved a spot Bitcoin ETF from BlackRock's iShares, causing a flurry of market activity.
Cointelegraph's misstep in reporting
The storm began with cryptocurrency media outlet Cointelegraph publishing the purported news of the SEC's approval. This claim was further amplified on social media.
However, the reality painted a different picture. BlackRock was quick to debunk the rumors, confirming that its ETF application remained under review.
Cointelegraph later edited their post, inserting the word "reportedly." This led to criticism and humorous reactions from readers who questioned the media outlet's journalistic integrity and decision-making process in disseminating such crucial information. Despite their subsequent apology for the error and a report detailing the incident, the community remained angry and frustrated.
The report helped to contribute to roughly $182.5 million worth of liquidations over the past 24 hours.
Will this affect Bitcoin ETF approval chances?
This misinformation saga led to a sharp uptick in Bitcoin's price, which temporarily surpassed $30,000 before plummeting 8%.
Observers like Bitfinexed have pointed out the potential long-term consequences of such episodes, suggesting that they could furnish the SEC with grounds to deny Bitcoin ETF applications.
Well, now the SEC knows there was a fake Bitcoin Spot approval market manipulation pump that they can cite in the next spot Bitcoin ETF denial.— Bitfinex'ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) October 17, 2023
Which helps them deny the applications again because they can show manipulation of the underlying market.
Great job guys. https://t.co/1HtZPExJmc
These incidents accentuate the market's vulnerability to fake news and speculation. Nonetheless, the sentiment among many experts remains positive. Bloomberg analysts, for instance, project a 90% probability of a spot Bitcoin ETF approval by January 10, 2024.
Larry Fink's reaction
In an interview with Fox Business, BlackRock CEO Larry Fink opined that the incident was indicative of the surging interest in cryptocurrencies.
Fink stressed an increasing demand and enthusiasm for cryptocurrency investments based on his interactions with their global client base.
Looking to the future, he sees cryptocurrency evolving into a key asset for investors, particularly as a safe haven during uncertain economic times.