Bitcoin (CRYPTO: BTC) witnessed a price increase from $27,900 to $30,000 on Monday due to misleading news about the immediate approval of a Exchange-Traded Fund (ETF) by a social media platform X, formerly known as Twitter.
This misleading information led to liquidation of nearly $100 million within an hour.
Despite the false report about the European Training Institute's approval being removed after about half an hour, its brief presence significantly impacted the cryptocurrency's price.
Bitcoin's value eventually dropped to $28,000
amid the market experts' skepticism.
A spokesperson for Blackrock (NYSE: BLK) stated to Benzinga, "The iShares Bitcoin ETP application is still under review by the Securities and Exchange Commission." Data from CoinGlass reveals that the sudden price spike to $30,000 led to the liquidation of short positions worth $81 million, while the subsequent price drop resulted in the liquidation of long positions worth $31 million.
Liquidation occurs when a trading platform forcibly closes a leveraged trader's position und to partial or complete depletion of their initial margin, usually when traders fail to maintain the required margin for such a position.
The official website of the Securities and Exchange Commission does not list any approvals for the exchange-traded Bitcoin fund.
Interestingly, the Securities and Exchange Commission does not intend to appeal its defeat in the case against Grayscale, as
reported by Benzinga on Friday.
