Bitcoin Witnesses Price Spike Following Misleading X Post

Bitcoin experienced a sharp rise from $27,900 to $30,000 as a result of an inaccurate announcement about a spot ETF approval on the social platform X, previously known as Twitter. 

This misreport led to a series of liquidations amounting to almost $100 million within an hour. The misleading post was removed approximately half an hour after being published, but it had already triggered substantial market movement. The price of Bitcoin subsequently dropped to $28,000, fueled by doubts expressed by experts and media professionals. 

Investment management firm BlackRock confirmed the inaccuracy of the report to CoinDesk. Data sourced from CoinGlass indicates that there were liquidations of $81 million in short positions (wagers against a price rise) when Bitcoin soared to $30,000, and $31 million in long positions (wagers anticipating a price surge) during the subsequent price adjustment. 

Liquidation refers to a situation wherein an exchange mandatorily closes a trader’s leveraged position due to inadequate margin. This typically transpires when a trader cannot fulfill the margin prerequisites to maintain the trade. 

Official records from the SEC’s website do not show any approvals for a spot Bitcoin ETF at the moment. Further, Bloomberg has clarified that BlackRock’s application remains in the evaluation phase. Earlier reports from the previous week stated that the SEC has chosen not to challenge its recent setback in the case against Grayscale. This development is perceived to enhance the likelihood of GBTC transforming into a spot ETF. 

Following the U.S. Securities and Exchange Commission’s decision not to contest the Grayscale verdict, Bitcoin’s value increased by 4% during the early hours of Monday in Asia.