In a whirlwind of events, the cryptocurrency market experienced a sudden surge in Bitcoin's price, momentarily hitting the $30,000 mark. This unexpected spike was triggered by a false report suggesting the approval of a spot ETF, which was later debunked.
The misleading information was initially posted on the social app X, previously known as Twitter. The post, which was up for nearly half an hour, garnered significant attention, causing a notable impact on Bitcoin's price. However, as skepticism grew among analysts and reporters, the post was deleted, and Bitcoin's price receded from its peak of $30,000 to around $28,000.
CoinGlass data revealed that this brief surge resulted in the liquidation of approximately $81 million worth of short positions, or bets against Bitcoin's price increase. Conversely, as the price corrected itself, around $31 million in long positions, or bets favoring a price hike, were liquidated. Liquidation in trading terms refers to the forced closure of a trader's leveraged position when they fail to meet the margin requirements.
BlackRock, a global investment management corporation, confirmed the inaccuracy of the spot ETF approval report. Furthermore, a check on the SEC website showed no approvals for a spot Bitcoin ETF. Bloomberg also chimed in, reporting that BlackRock's application remains under review.
This incident underscores the volatility and sensitivity of the cryptocurrency market to news, whether accurate or not. It also serves as a reminder of the potential risks and rewards for traders in such a dynamic environment.
