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- On Monday, a misleading tweet claiming SEC endorsement for a BlackRock Spot Bitcoin ETF triggered market activity.
- Bitcoin’s value rose from $27,900 to more than $30,000 due to the erroneous report.
- Prices swiftly reverted to $28,000 as the misinformation was revealed.
A misleading tweet asserting that the SEC had approved a Spot Bitcoin ETF from BlackRock sparked a short-lived crypto rally and resulted in over $100 million in liquidations across exchanges on Monday.
Bitcoin surged from $27,900 to over $30,000 following the false report, which originated from a Twitter account impersonating Financial News London. Prices quickly fell back to $28,000 as analysts and journalists pointed out the misinformation and the absence of any actual filing on the SEC website.
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BlackRock clarified that it does not possess an approved Bitcoin ETF application, contrary to the fabricated tweet. Last week, reports indicated that the SEC would not appeal a court ruling that could allow Grayscale’s GBTC to transition to an ETF.
According to CoinGlass, shorts valued at $72 million were liquidated during Bitcoin’s rise above $30,000, while around $31 million of longs were eliminated in the subsequent correction.
Debunked report underscores eagerness for Bitcoin ETF
The significant market response illustrates the level of anticipation regarding the eventual SEC approval of a spot crypto ETF in the United States. With major players like Fidelity and BlackRock pursuing authorization, any signs of advancement can trigger irrational enthusiasm.
While the potential for an ETF remains appealing, this fleeting price fluctuation emphasizes the necessity for traders to confirm information before reacting impulsively. As the crypto landscape evolves, the importance of avoiding hasty responses to rumors will only increase.
