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Was Monday's Bitcoin Pump Dump Planned? Crypto Analyst Urges SEC Investigation

source-logo  coingape.com 18 October 2023 07:21, UTC

Sudden spike in Bitcoin price on Monday as fake spot Bitcoin ETF approval news surfaced has continued to baffle the crypto community. Bitcoin’s whirlwind featured an abrupt surge to $30,000, triggered by rumors of the SEC approving Blackrock’s iShares Bitcoin spot ETF. However, this excitement quickly turned to disappointment as Blackrock denied the claims, sending Bitcoin plummeting back to $28,100 in minutes.

The incident, resulting in a cascade of liquidations across the crypto market, has been met with widespread criticism from experts who firmly believe the ultimate objective was market manipulation for the benefit of a select few.

Is There A Need for Regulatory Action?

Prominent crypto analyst Gareth Soloway weighed in on this situation, describing it as a “pump and dump” during a recording on Tuesday. Soloway asserted that such a drastic price movement couldn’t have occurred without someone intentionally spreading false information for personal gain.

“I’m just being honest with you; this stuff doesn’t just materialize out of thin air with no one having some ulterior motive.” He emphasized.

Soloway further expressed his concern over the situation, noting that such events could undermine trust in the crypto space, calling for a regulatory body’s intervention.

“Bottom line, I will say this: yes, the crypto markets need the SEC or some regulatory body that is monitoring the crazy house essentially…There needs to be an investigation by the SEC into this to find out who was placing big bets on Bitcoin.” He went on.

According to Soloway, when rumors, misinformation or news can lead to significant price fluctuations, there’s a call for a regulatory framework to ensure market integrity.

Positive Market Signal Amid the Chaos

That said, while the “pump and dump” incident had market-wide consequences, Soloway observed that the Bitcoin chart had indicated a positive bias leading up to the events. And despite not providing a clear target he highlighted that the chart provided signals for a potential surge.

That said, CoinTelegraph, the source that initially reported this false information, causing an immediate market response, removed the post and issued an apology. Shortly after the incident, Kristina Lucrezia, the Editor-in-Chief of CoinTelegraph, expressed her regrets at a Dubai event, stating, “This was a disaster, and it serves as an example of what must not occur.”