SEC Issues Warning for the Bitcoin Market: Fake News Causes Turmoil!

• After a day filled with misinformation, the United States Securities and Exchange Commission (SEC) used social media to issue a stern warning.
• The storm began when a crypto media outlet (!) published claims of SEC’s approval, causing these claims to echo on social media.
• This misleading story led to a sharp rise in the price of Bitcoin and temporarily pushed it above $30,000 before an 8% drop.

News that BlackRock’s spot Bitcoin ETF had been approved caused confusion in the market, prompting a message from the SEC.

SEC Issues Warning on Social Media

After a day filled with misinformation, the United States Securities and Exchange Commission (SEC) used social media to issue a stern warning. The agency’s message states, “Be careful about what you read on the internet. The best source of information about the SEC is the SEC itself.”

This cautionary note came after false reports claiming that the SEC had approved a spot Bitcoin ETF offered by BlackRock, based on erroneous reports, had disrupted market activity.

The storm began when a crypto media outlet (!) published claims of SEC’s approval, causing these claims to echo on social media. However, reality painted a different picture. BlackRock quashed the rumors by confirming that the ETF application was still under review.

The media outlet (!) later edited its article to include the word “alleged.” This sparked criticism and humorous responses from readers questioning the media outlet’s journalistic integrity and decision-making process in disseminating such critical information. Despite later apologies for the error and a detailed report explaining the incident, the community remained angry and disappointed. This report contributed to approximately $182.5 million in liquidations in the past 24 hours.

Does this affect the chances of Bitcoin ETF approval?

This misleading story led to a sharp rise in the price of Bitcoin, temporarily pushing it above $30,000 before an 8% drop. Observers like Bitfinexed pointed out the potential long-term consequences of such events, suggesting that they could provide grounds for the SEC to reject Bitcoin ETF applications.

These events demonstrate the market’s sensitivity to misinformation and speculation. Nevertheless, many experts remain positive. For example, Bloomberg analysts predict a 90% chance of approval for a spot Bitcoin ETF by January 10, 2024.

Larry Fink’s Response

BlackRock CEO Larry Fink mentioned in an interview with Fox Business that this incident demonstrates the increasing interest in cryptocurrencies. Fink highlighted the growing demand and excitement for cryptocurrency investments, based on interactions with their global customer base. Looking to the future, he sees cryptocurrencies becoming an important asset for investors, particularly as a safe haven in uncertain economic times.