Recent events in the cryptocurrency industry sent shockwaves through the market, triggered by false information disseminated by Cointelegraph regarding the approval of a spot Bitcoin ETF.
The erroneous report swiftly fuelled a substantial but fleeting surge in Bitcoin's price, briefly reaching $30,000.
However, BlackRock clarified that its iShares application for the ETF is still under review by the United States (US) Securities and Exchange Commission (SEC).
This led Bitcoin to retrace its steps, settling at $28,000, amidst scepticism from analysts and reporters.
The misleading post was deleted approximately 30 minutes later, but the impact on prices had already been substantial.
Bloomberg analyst James Seyffart promptly refuted the credibility of this information mere moments after the surge:
"This is fake news; I can't find anything that would confirm this at the moment. BlackRock has just confirmed to a FOX reporter that this is false; their application is still under review."
Fox Business journalist Eleanor Terrett also posted on X (formerly known as Twitter):
"BlackRock has personally confirmed to me that this information is entirely false. Their application remains in the review stage."
The aftermath was particularly harsh for investors who had acted hastily due to Fear of Missing Out (FOMO).
They rushed to purchase Bitcoin during its brief surge, only to face significant financial losses once the truth emerged.
Compounding the market's turbulent environment, data analytics firm Look On-Chain reported an incident involving a cryptocurrency whale.
Prompted by the fake ETF news, this individual hastily acquired 20.5 wrapped Bitcoin (WBTC) out of FOMO.
Realising the misinformation, the whale quickly liquidated the holdings, incurring a $49,000 loss within a mere 10-minute timeframe.
Initially, the whale had invested 613,201 USDC (a stablecoin pegged to the US dollar) for the WBTC but sold the assets for only 563,970 USDC.
CoinGlass data further indicates that this price oscillation led to the liquidation of $81 million worth of short positions (bets against rising prices) during the move to $30,000, as well as $31 million in long positions (bets on rising prices) during the subsequent correction.
Liquidation occurs when an exchange forcibly closes a leveraged position due to a partial or total loss of the trader's initial margin.
Of note, the SEC website offers no record of approvals for a spot Bitcoin ETF.
Bloomberg's report concurs, confirming that the BlackRock application remains under the regulatory body's review.
Meanwhile, the SEC has not contested a recent court ruling that favoured Grayscale Investments in relation to its spot Bitcoin ETF proposal.
Cointelegraph extended its apologies to its readers and delved into an in-depth investigation surrounding the events that culminated in the publication of unverified news concerning a spot Bitcoin ETF.
Cointelegraph took an extra step to detail the timeline of how the events went down.
Extracted from Cointelegraph's clarification news
Ethereum is capturing market attention once again, with analysts widely forecasting a major breakout that could send ETH soaring to the $5,000 level and beyond.
XingChiBakkt is acquiring nearly 30% of a Japanese textile company to transform it into a bitcoin-focused business called bitcoin.jp. The company aims to integrate digital assets into its operations and corporate treasury.
WeatherlyFrance’s far-right Rassemblement National (RN) has proposed using surplus nuclear energy to mine Bitcoin-a move that is dramatically contradictory to Marine Le Pen's 2016 promise to ban virtual currencies.
XingChiThe Satoshi Nakamoto statue in Lugano was taken from its spot in the park and later found broken in Lake Lugano, showing it was vandalised rather than simply stolen. Despite the damage, the local community and supporters remain committed to celebrating Bitcoin’s creator and the ideas the statue represents.
AnaisA false rumour on social media claimed China had banned crypto again, causing brief market panic. Officials and experts confirmed no new rules were issued, and the 2021 restrictions still apply.
WeatherlyFigma’s share price jumped 250% on its NYSE debut, closing at $115 and rising further after hours. The company also revealed it had put nearly $100 million into Bitcoin and stablecoins as part of its treasury plan.
Weatherly
Jason RiggsStrategy reported a $10 billion profit in Q2, driven by Bitcoin gains and new fair value accounting rules. It raised over $10.5 billion through stock sales and used most of it to buy more Bitcoin, pushing its holdings above 628,000 BTC.
AnaisBitmain, the world’s leading Bitcoin mining ASIC manufacturer, is preparing to open its first manufacturing facility in the United States—a strategic move set to accelerate production and support for American clients.
XingChiMarti, a Turkish ride-hailing company, has put 20% of its cash into Bitcoin and plans to increase that to 50%. The move is part of a long-term plan to use crypto as a store of value while keeping its main business growing.
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Cointelegraph