In the last 4 hours, the crypto market experienced a whirlwind of activity, with over 100 million U.S. dollars in liquidations occurring across the entire network. Of that staggering amount, more than 71 million U.S. dollars were tied to Bitcoin.
The market’s rollercoaster ride began when BTC briefly skyrocketed, only to plummet just as swiftly. This dramatic price action was triggered by a report from Cointelegraph claiming that the U.S. Securities and Exchange Commission (SEC) had given the green light to the iShares Bitcoin Spot ETF.
BlackRock, one of the world’s largest asset management firms, promptly responded to the frenzy, clarifying that their application for a Bitcoin spot ETF was still under review by the SEC.
A spokesperson from BlackRock affirmed that the iShares Bitcoin application had not received regulatory approval. At that point, the SEC had not sanctioned any spot Bitcoin ETF in the United States.
These rumors emerged shortly after the SEC publicly stated it had no intentions of appealing an August court decision, instructing the SEC to reconsider Grayscale Investments’ bid to convert its flagship GBTC fund into a spot Bitcoin ETF.
While the crypto industry eagerly awaits the approval of the first spot Bitcoin ETF, it’s crucial to note that the SEC’s decision not to appeal the Grayscale case does not guarantee forthcoming approval.
Bitcoin Price Analysis
As news of the rumored ETF approval spread like wildfire, BTC’s price surged toward the $30,000 mark. However, as confirmations arrived, BTC’s value retreated from its peak of $29,388 to a current trading price of $28,183.44, representing a nearly 5% gain in the past 24 hours. The most remarkable development was the astonishing 350.68% increase in the 24-hour trading volume.
Market analysts chimed in on the matter, with “The Wolf Of All Streets” highlighting the extreme price volatility, while Ali suggested that a BTC ETF approval could lead to a substantial price surge. They advised investors to consider a “buy the rumor, sell the news” strategy.
Cointelegraph, the source of the initial rumor, later apologized for the misleading information, acknowledging that an internal investigation was underway. They emphasized their commitment to transparency and pledged to share their findings with the public within the next three hours.
However, the crypto market’s rapid fluctuations and the lingering uncertainty surrounding a Bitcoin ETF approval remind us that this space remains highly unpredictable and susceptible to both rumors and speculation.
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