In a flurry of market activity, false news Surrounding the approval of a Bitcoin (BTC) Spot Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC) sent shockwaves through the cryptocurrency community.
False Rumors of BTC Spot ETF Approval Lead to Volatility
Initial reported by Cointelegraph, the news claimed that BlackRock’s iShares Bitcoin Spot ETF had received supervisory approval.
However, Bloomberg analyst James Seyffart immediately questioned the authenticity of the report. to report that he could find no confirmation of the news at the time. Seyffart stated:
I believe this is fake news. Although this would be a positive for the things we have said. I can’t find anything at the moment that would confirm this.
Then BlackRock confirmed told FOX reporter Eleanor Terret that the application was still being processed, making the original report false.
The consequences of this misinformation were immediately visible in the market. BTC experienced a brief surge from $27,800 to $30,000 within minutes as traders reacted to the alleged ETF approval news. However, when the truth came out, the market corrected itself, causing a wave of liquidations.
According to facts from Glassnode, the aftermath of the wave saw a significant increase in liquidations. Within four hours, $113.75 million in long positions and $78.87 million in short positions were liquidated, reflecting the volatility and sudden reversal caused by the fake news.
The incident also gave rise to Cointelegraph to apologize for a post that spread inaccurate information about the BlackRock Bitcoin ETF.
The media outlet announced that an internal investigation is underway to determine the source of the misinformation. Cointelegraph stated:
We apologize for a tweet that led to the spread of inaccurate information about the Blackrock Bitcoin ETF. An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is completed within three hours.
False breakout cannot dampen Bitcoin’s profitability
Despite the false breakout above $30,000, Bitcoin has held strong significant profits within 24 hours. Currently trading at $28,100, it remains $1,000 higher than its initial price before the fake news spreads across all platforms. This represents a gain of 5.1% during this period.
Consequently, this positive turn of events has caused Bitcoin to shift from negative to positive numbers in different time frames. In the past 7 days, Bitcoin has seen a gain of 2.6%, while in 30 days it has seen an increase of 6.4%. Only in the 14 days there was a slight decrease of 0.4%.
Furthermore, a closer examination of BTC’s 1-day chart reveals its ability to surpass significant resistance levels. Bitcoin in particular has successfully overcome these two critical moving averages: the 50-day MA at $27,150 and the 200-day MA at $27,030.
These moving averages posed major hurdles for Bitcoin’s price after initially falling below this threshold.
Moreover, Bitcoin managed to break the $28,000 resistance level, which previously acted as an important barrier after the false break above this level.
Going forward, the sustainability of Bitcoin’s current price level and bullish momentum remains to be seen amid the circulating rumors surrounding the long-awaited ETF decision from filers and the US SEC.
Featured image from Shutterstock, chart from TradingView.com
