Bitcoin spikes to $30k amid fake spot ETF news

• Bitcoin spikes to highs of $30k amid fake spot ETF news.
• BlackRock has confirmed its spot Bitcoin ETF application remains under review.
• Over $130 million shorts were liquidated as the price of Bitcoin shot to near $30k on Monday

A relatively quiet crypto market sparked into a frenzy for a few minutes on Monday as news spread that the Securities and Exchange Commission (SEC) had approved the first Bitcoin ETF.

Bitcoin price soared more than 10% within no time as major crypto news accounts on X seized on the news, with BTC rising to $30,000 on crypto exchange Coinbase. This was Bitcoin’s highest level since August 9.

Spot Bitcoin ETF approval was ‘fake’

First, Fox Business reporter Eleanor Terret posted on her X account that BlackRock’s iShares Bitcoin ETF had not been approved. She cited a statement from the $9 trillion asset manager that indeed its “application is still under review.” 

Bloomberg and the Wall Street Journal have also quoted statements from BlackRock to the effect that the said ETF application remains under review. The SEC has also confirmed the reports were false. 

🚨NEW: The @SECGov has confirmed that the reporting by @Cointelegraph was incorrect. https://t.co/vpnZCXzh6o

— Eleanor Terrett (@EleanorTerrett) October 16, 2023

The SEC has recently delayed decision on all applications for spot Bitcoin EFTs before it. The regulator however did not appeal a court decision in favour of Grayscale over the conversion of GBTC to a spot ETF. As such, the market’s reaction over the weekend and early morning had benefited from sentiment that chances of a Bitcoin ETF approval were high.

Other than the GBTC to spot ETF countdown, the crypto market has had great anticipation for the other proposals that include BlackRock and Fidelity. For one, the product is expected to offer greater exposure to BTC for traditional investors – with this resulting in the influx of capital into the market. Experts say that the next bull market could benefit significantly from this.

Could this explain the reaction to today’s news? First posted on an X account of a crypto publication, the claim spread like wildfire, attracting massive buyside pressure. While the post has been debunked as fake news, could it have been a leak that jumped the gun?

Meanwhile, Cointelegraph has apologized for the “tweet” and is reportedly conducting an internal investigation as to what happened.

We apologize for a tweet that led to the dissemination of inaccurate information regarding the Blackrock Bitcoin ETF.

An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is…

— Cointelegraph (@Cointelegraph) October 16, 2023

Over $100 million liquidated

Just as Bitcoin had spiked amid online circulation of the fake news, its price fell sharply soon after as more confirmed reports highlighted this to be fake news. Total liquidations jumped more than 280% in the past 24 hours.

More than $100 million shorts were liquidated as Bitcoin prices soared amid the news. According to data from Coinglass, the hour that saw BTC hit $30k had more than $112 million total liquidations. There were over $78 million shorts and $34 million longs liquidated, including over $64 million for BTC.