July 11, 2024
Bitcoin Surges to $30K, Then Drops Amid False Spot ETF Approval Report
Bitcoin News

Bitcoin Surges to $30K, Then Drops Amid False Spot ETF Approval Report

Bitcoin (BTC) experienced a sharp price surge, jumping from $27,900 to $30,000, following the dissemination of a false report on the social app X (formerly known as Twitter). This erroneous report falsely claimed the approval of a spot ETF, resulting in approximately $100 million worth of liquidations within an hour.

The misleading post was deleted around 30 minutes after it was posted, but it garnered enough attention to significantly impact Bitcoin’s price. However, Bitcoin’s value subsequently fell from $30,000 to $28,000 as analysts and reporters expressed skepticism regarding the report.

Data from CoinGlass reveals that the price movements led to $81 million worth of short positions (bets against higher prices) being liquidated during the push to $30,000, and $31 million in long positions (bets on higher prices) being liquidated during the subsequent correction. Liquidation occurs when an exchange forcibly closes a leveraged position due to the trader’s inability to meet margin requirements.

It’s worth noting that the U.S. Securities and Exchange Commission (SEC) website indicates no approvals for a spot Bitcoin ETF, and Bloomberg reported that BlackRock’s application is still under review.

In related news, the SEC’s decision not to appeal a recent case against Grayscale was announced last week. This decision is seen as potentially increasing the likelihood of Grayscale’s GBTC eventually being converted into a spot ETF. As a result, Bitcoin saw a 4% increase in Asian morning trading on Monday, building on the positive market reaction observed on Friday following the SEC’s decision.

Image by fabrikasimf on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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