Amid a flurry of market activity, fake news The approval of a bitcoin (btc) spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) sent shockwaves through the cryptocurrency community.
False Rumors About btc Spot ETF Approval Cause Volatility
Initially reported According to Cointelegraph, the news claimed that BlackRock’s iShares bitcoin Spot ETF had received regulatory approval.
However, Bloomberg analyst James Seyffart quickly cast doubt on the authenticity of the report. indicating who could not find any confirmation of the news at that time. Seyffart stated:
I think this is fake news. Although this would be positive for the things we have been saying. I can’t find anything that can confirm this at this time.
Subsequently, BlackRock confirmed told FOX reporter Eleanor Terret that the application was still under review, making the initial report false.
The repercussions of this misinformation were immediately evident in the market. btc saw a brief surge from $27,800 to $30,000 in a matter of minutes as traders reacted to the alleged ETF approval news. However, when the truth came to light, the market corrected itself, causing a liquidation wave.
According data From Glassnode, a significant increase in liquidations occurred after the surge. 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 fake news.
The incident also led Cointelegraph to apologize for a publication that had 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 caused inaccurate information to be spread about the Blackrock bitcoin ETF. An internal investigation is currently underway. We are committed to transparency and will share the results of the investigation with the public once it is concluded within 3 hours.
False Breakout Fails to Dampen bitcoin‘s Profitable Streak
Despite the false breakout above $30,000, bitcoin has held significant profits in 24 hours. It is currently trading at $28,100, but it is still $1,000 higher than the initial price before spreading the fake news on all platforms. This represents a profit of 5.1% during this period.
Consequently, this positive turn of events has caused bitcoin to go from negative to positive figures over several time periods. In the last 7 days, bitcoin recorded a gain of 2.6%, while in 30 days it saw a rise 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 break through significant resistance levels. In particular, bitcoin successfully overcame 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 price after initially falling below this threshold.
Additionally, bitcoin managed to break through the $28,000 resistance level, which had previously acted as a major barrier following the false breakout above this mark.
Going forward, the sustainability of bitcoin‘s current price level and bullish momentum remains to be seen amid rumors circulating around the long-awaited ETF decision by the applicants and the US SEC.
Featured image from Shutterstock, chart from TradingView.com
