’s price skyrockets on misleading reports about BlackRock’s ETF endorsement.
- The crypto community reacts as Cointelegraph corrects its announcement.
- SEC’s hesitance on Bitcoin ETF applications continues to shape market sentiment.
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A look into Bitcoin’s significant price movement on the back of inaccurate news about BlackRock’s ETF approval and the repercussions that followed.
Bitcoin Touches $30,000 Amidst ETF Approval Rumors
Earlier today, the cryptocurrency world was abuzz with news that seemingly heralded a milestone for Bitcoin. As per initial reports, the price of Bitcoin experienced a sharp ascent, nearly grazing the $30,000 mark. This was largely attributed to rumors suggesting that a much-awaited exchange-traded fund (ETF) had finally received approval. However, a closer look reveals a more complex picture. Current data from CoinGecko places Bitcoin at $27,974, a 4% increase in the past day.
The Catalyst: Cointelegraph’s Misleading Tweet
The spike in Bitcoin’s price can be traced back to a tweet from Cointelegraph. The esteemed crypto news platform, in its tweet, claimed that the iShares-Blackrock ETF application had been greenlit. This set off a cascade of excitement within the crypto community, with many perceiving this as a significant bullish turn for the premier cryptocurrency. Bitcoin’s price, in response, jumped by 10%, even reaching a peak of $29,483 within a short span. Notably, this positive sentiment wasn’t confined to Bitcoin alone. Leading cryptocurrencies such as Ethereum, Solana, and Dogecoin also witnessed an uptick.
Returning to Ground Reality: Correcting the Misinformation
However, the euphoria was short-lived. As ETF experts and various news outlets began verifying the claim, it became evident that the U.S. Securities and Exchange Commission (SEC) had not approved the ETF in question. Responding to the situation, Cointelegraph promptly edited and later removed the misleading tweet. The erroneous information had significant implications. BlackRock, recognized as the world’s preeminent fund manager with a staggering $9.5 trillion in assets, had indeed sought SEC’s nod for a spot Bitcoin ETF in June. The market’s reaction, with institutions pumping money into Bitcoin, sent its value skyrocketing, marking a 12-month high. However, the SEC, maintaining its usual stance, has not yet provided any conclusive answers on the numerous Bitcoin ETF applications it holds.
Why a Bitcoin ETF Matters
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The longing for a Bitcoin ETF among large investors is palpable. Such an ETF would offer them an avenue to invest in Bitcoin, bypassing the intricate challenges associated with storage. Furthermore, an approved Bitcoin ETF could potentially usher in a significant influx of capital into the crypto domain, further boosting the price of Bitcoin. Yet, the SEC remains cautious. The absence of a spot Bitcoin ETF in the U.S. is primarily due to the regulatory body’s concerns about potential market manipulation.
This incident underscores the volatile nature of the cryptocurrency market and the profound impact news and rumors can have on prices. While the crypto community awaits a clear stance on Bitcoin ETFs, it’s essential to approach news with a discerning eye, recognizing the potential ripple effects of misinformation in such a dynamic ecosystem.