Currently, the crypto market is on a bearish trend despite the CPI Data. However, cryptocurrencies are well-known for having an extremely volatile market and are highly susceptible to sudden price movements. The recent rollercoaster ride Bitcoin has experienced has confirmed this attribute about digital currencies.
BTC is trading just above the $28,000 to $28,500 mark after a recent post persuaded investors, shooting its price upward.
The ETF buzz caused the surge in BTC price and caused a chain reaction. However, the post was a hoax displaying misleading information, and this caused Bitcoin’s price to cusp to the $30,000 level. Its price later dropped after realizing the post by Cointelegraph had false information.
How the crypto market ETF buzz sent BTC to $30k
Bitcoin’s price shot up to $30,000 from $27,900 after a report was posted on X by Cointelegraph on Monday that had false information. The report stated a Bitcoin (BTC) spot ETF was approved by the US Securities and Exchange Commission (SEC).
However, this was false. However, the post was deleted after 30 minutes, but it was enough time to cause a ripple effect in the market. In addition to the price surge, traders lost their short positions to the rumors, and liquidations in millions hit wave among investors.
The bitcoin price was impacted significantly, causing a rise close to $30,000 and later dropping down to the $28,000 mark. This was catalyzed by the skepticism shown by reporters and analysts. BlackRock confirmed the information was false, and Cointelegraph deleted and apologized for the false report.
The report stated that the SEC had approved BlackRock’s iShares spot BTC Exchange-Trader Funds (ETF). Cointelegraph stated in their public apology that it was a result of misinformation. They elaborated that the report originated from an unconfirmed screenshot from an X user claiming it was from Bloomberg Terminal.
However, Cointelegraph did not ultimately proceed with the article’s publication. They apologized and gave out a timeline of the conversation between the X user and their team.
Cointelegraph did not ultimately publish an article with this incorrect information, but we deeply regret posting this in error on X and the impact it has caused. An internal investigation revealed that our standard procedure for posting breaking news on social media, wherein sources are required to be verified before posting to social media, was not followed.
Cointelegrapgh
The US Securities and Exchange Commission (SEC) also confirmed that the report was false. They stated that there was no spot Bitcoin ETF approval, and Bloomberg also confirmed the report was untrue.
Why is the crypto market down today?
Regardless of the post by Cointelegraph being untrue and apologizing, investors caught wind of this information and quickly acted on it, with the FOMO mentality. This, in turn, drove its price up and later settled lower than the peak price, currently tagged at $28,300.
In the past 24 hours, bitcoin liquidations hit $137.2 million. Long liquidations are at $45.6 million, while short liquidations are at $91 million. Bets against higher prices were made on the move to $30,000. In the move, $31 million longs were liquidated during the market correction.
This led to a forced closure of the traders’ leverage due to inadequate funds to keep the trades open. Considering the long-awaited ETF approval, rumors on the spot of Bitcoin ETF approval created a frenzy, sending a shockwave in the crypto market as long and short positions were quickly placed.
Following the highly volatile nature of the crypto market, such misleading information is a double-edged sword. As such, the long-awaited ETF approval was met with a disturbing truth and led to disappointment despite the market enthusiasm. The surge serves as a crucial reminder that the crypto market is highly volatile and is highly sensitive to news, regardless of the accuracy or speculations.
