Crypto traders have been feverishly waiting for approval of any Bitcoin spot ETF up for review by the SEC.
The Bitcoin Whipsaw: SEC Drama and Market Surges
There are several high profile/net worth investment houses that have submitted their applications in hopes of becoming the first to offer retail investors a convenient way to include Bitcoin in their portfolios, with the largest and most influential of these firms being BlackRock with $10 trillion in assets under management.
Early in trading today (around 9:25 AM EST) Cointelegraph posted a comment claiming that BlackRock’s request for a spot Bitcoin ETF had been accepted by the SEC. This sent Bitcoin flying higher by $1,890 (6.75%) in a span of ten minutes. The sudden surge liquidated eager investors buying the rumor. According to data from Glassnode, in the aftermath of the surge traders observed an increase in liquidations. The tweet was taken down 30 minutes later after being disproven by a Fox News reporter who spoke directly with a BlackRock executive.
This caused an immediate and swift knee-jerk reaction as the market sold off just as quickly as it rose causing prices to dip even lower than what they had been at upon the New York market opening, within 15 minutes there was a price range of nearly $2,000 because of the false news, $113.75 million in long positions and $78.87 million in short positions were liquidated within 4 hours.
