Bitcoin

Impact

Million

<![CDATA[<figure class="image"><img src="https://cimg.co/news/126465/333915/adobestock-518716397.jpeg" alt="Bitcoin&amp;amp;amp;#039;s price fluctuates rapidly" srcset="https://cimg.co/news/126465/333915/responsive-images/adobestock-518716397___media_library_original_6016_4016.jpeg 6016w, https://cimg.co/news/126465/333915/responsive-images/adobestock-518716397___media_library_original_1200_801.jpeg 1200w, https://cimg.co/news/126465/333915/responsive-images/adobestock-518716397___media_library_original_900_601.jpeg 900w, https://cimg.co/news/126465/333915/responsive-images/adobestock-518716397___media_library_original_720_481.jpeg 720w, https://cimg.co/news/126465/333915/responsive-images/adobestock-518716397___media_library_original_600_401.jpeg 600w, https://cimg.co/news/126465/333915/responsive-images/adobestock-518716397___media_library_original_300_200.jpeg 300w" sizes="100vw" width="6016" class="content-img"><figcaption>Bitcoin's price fluctuates rapidly following a false announcement about BlackRock's ETF approval, resulting in $100 million in trading liquidations. Image by <a href="https://stock.adobe.com/ca/contributor/205160911/pla2na?load_type=author&amp;prev_url=detail">pla2na</a>, Adobe Stock</figcaption></figure>Today, Bitcoin's price experienced a swift rise from $27,900 to $30,000 following a false announcement regarding BlackRock's Bitcoin spot ETF approval.&nbsp;<a href="https://twitter.com/Cointelegraph/status/1713925876969017792">The misleading information</a>, originally shared on social platform X, led to a flurry of trading activity resulting in about <a href="https://blockworks.co/news/bitcoin-etf-report-price-jump">$100 million in trading liquidations</a> within just one hour.<h2 id="misleading-information-s-immediate-impact-on-bitcoin-price">Misleading Information's Immediate Impact on Bitcoin Price</h2>The fake announcement was powerful enough to push <a href="https://cryptonews.com/news/bitcoin-price-prediction-as-analyst-says-us-recession-can-avoided-can-btc-reach-100000.htm">Bitcoin's price</a> considerably higher, although it was removed approximately 30 minutes after its initial posting. But by that time, the damage had been done.&nbsp;<figure class="media"><oembed url="https://twitter.com/Cointelegraph/status/1713925876969017792"></oembed></figure>The cryptocurrency's price had already been affected, with traders making decisions based on the misleading information.&nbsp;CoinGlass, a data analytics platform, shows that the abrupt price increase to $30,000 led to <a href="https://www.coinglass.com/LiquidationData">the liquidation of short positions amounting to $81 million</a>. When the Bitcoin price corrected itself and dropped to $28,000, long positions worth $31 million were also liquidated.&nbsp;For those unaware, <a href="https://www.investopedia.com/terms/l/liquidation.asp">liquidation</a> in trading refers to the forced closure of a trader's leveraged position when their initial margin is partially or fully depleted.<a href="https://www.reuters.com/technology/bitcoin-jumps-much-10-track-best-day-since-august-2023-10-16/">A spokesperson from BlackRock clarified that </a>"The iShares Bitcoin ETF application is still under review by the SEC."<figure class="media"><oembed url="https://twitter.com/Swan/status/1714006347803443603"></oembed></figure>Larry Fink, the chairman and CEO of BlackRock, offered a different perspective on the Bitcoin price movement <a href="https://twitter.com/Swan/status/1714006347803443603">in a recent interview with Fox Business</a>."This rally today is way beyond the [bitcoin spot ETF] rumor. The rally today is about a flight to quality," Fink said.<h2 id="sec-s-stance-on-bitcoin-etfs-remains-unchanged">SEC's Stance on Bitcoin ETFs Remains Unchanged</h2>As of now, the U.S. Securities and Exchange Commission (SEC) <a href="https://www.ft.com/content/f83d49a7-a08c-47e9-8a58-25a17ca0d9a4">has not approved any spot Bitcoin ETFs</a>. <a href="https://www.sec.gov/">The regulatory body's website</a> doesn't list any such approvals, effectively debunking the fake announcement related to BlackRock's Bitcoin ETF.&nbsp;Interestingly enough, the <a href="https://finance.yahoo.com/news/sec-won-t-appeal-loss-210722329.html">SEC recently decided not to contest its defeat</a> in a lawsuit against Grayscale, a move that many believe could potentially lead to Grayscale's Bitcoin Trust transitioning to a spot ETF.The rapid price movement in Bitcoin led to considerable discussion among market analysts. After the price hike and subsequent decline, <a href="https://twitter.com/xsn/status/1713919101616410654">experts were quick to voice their skepticism</a>, contributing to the currency's return to a lower value.&nbsp;Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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Bitcoin Price Spikes Following Fake BlackRock ETF Announcement: $100 Million Liquidated

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