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Bitcoin Surges to $30K, Then Drops, Amid Fake Spot ETF Approval Report
17/10/2023
Bitcoin experienced a rapid price surge from $27,900 to $30,000 triggered by a false report circulating on social media platform X (formerly Twitter) claiming the approval of a spot ETF for the cryptocurrency. This fictitious post led to nearly $100 million in liquidations within an hour. The erroneous information was later deleted, causing Bitcoin's value to retreat to $28,000 as skepticism grew among analysts and reporters. BlackRock confirmed the report was untrue. CoinGlass data revealed that approximately $81 million worth of short positions (bets against higher prices) were liquidated during the surge to $30,000, while $31 million in long positions (bets on higher prices) were liquidated during the subsequent correction.
It's worth noting that the U.S. Securities and Exchange Commission (SEC) had not approved any spot Bitcoin ETFs, and Bloomberg reported that BlackRock's application was still under review. The previous week, the SEC's decision not to appeal a Grayscale ruling had already caused a 4% rise in Bitcoin's value, as it increased the chances of Grayscale's GBTC eventually being converted into a spot ETF. Grayscale is affiliated with CoinDesk, further complicating the cryptocurrency's price fluctuations during this period.
