Bitcoin (BTC) Surges and Falls to $28,000 Due to Fake News of BlackRock's Spot ETF Approval
Date: 2023-10-16 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
Fake News about BlackRock and the Bitcoin Surge
On October 16, 2023, the cryptocurrency market experienced a sudden surge when the price of Bitcoin (BTC) rose to $30,000. This impressive growth was triggered by rumors of BlackRock's application for the launch of a spot Bitcoin ETF being approved. This event generated extraordinary interest among both investors and cryptocurrency enthusiasts.
News of the supposed approval of BlackRock's application appeared in the media and quickly spread through social networks. The CoinTelegraph publication even posted information on its Twitter page that the spot Bitcoin ETF had been approved. Within minutes of this tweet, the price of Bitcoin surged to $30,000, causing excitement among cryptocurrency holders.
However, this positive sentiment did not last long. Fox Business journalist Eleanor Terrett quickly debunked the fake news, citing a direct representative of BlackRock. It turned out that BlackRock's application for a spot Bitcoin ETF was still under review by the U.S. Securities and Exchange Commission (SEC).
This episode serves as a vivid example of how news and rumors can have a significant impact on cryptocurrency prices. The surge in the price of Bitcoin to $30,000 and its rapid fall to $28,000 illustrate how sensitive the cryptocurrency market is to external news and the potential consequences for investors.
Market Volatility and Its Impact on Cryptocurrency
This incident also underscores the high volatility of the cryptocurrency market. Within just one hour of the dissemination of fake information and its debunking, trades worth over $105.28 million were liquidated. A significant portion of this liquidation was attributed to short positions, highlighting how susceptible the cryptocurrency market is to rapid fluctuations.
High volatility means that investors and traders must be prepared for unexpected price swings. This can present both profit opportunities and risks of capital loss. Cases like this emphasize the importance of conducting thorough analysis and verifying news before making decisions to buy or sell cryptocurrencies.
