The approval of Bitcoin ETFs could potentially be a gamechanger for the cryptocurrency market, and a recent event underscores this possibility. On October 16, a fake news story was published on Cointelegraph stating that BlackRock’s Bitcoin ETF had been approved by the SEC. Prior to the dissemination of this misleading news, Bitcoin was trading below the $28,000 mark. However, the publication of the deceptive information caused a sudden 7.7% surge in Bitcoin’s value, propelling it to approximately $29,900.
On the Binance Exchange, Bitcoin futures reached highs of up to $30,720, and trading volumes approached a staggering 351,000 BTC, equivalent to roughly $10 billion at that time. CoinGlass data revealed that short positions worth $72 million were liquidated as the price surged towards the $30,000 milestone. Conversely, during the subsequent correction, long positions worth $31 million met the same fate.
This incident, driven by a single source of unverified information, emphasized the potential for significant market reactions to genuine news, supported by multiple reliable sources. It leaves us wondering: if authenticated news of similar magnitude were to surface, how much more profound would the market’s response be?