A tumultuous 24 hours in crypto underscored the market’s susceptibility to misinformation, prompting a warning from the SEC.
The saga began when Cointelegraph wrongly reported the SEC had approved a spot Bitcoin ETF from BlackRock’s iShares. This false claim spread rapidly on social media, fueling significant price volatility.
BlackRock swiftly refuted the rumors, confirming its application was still under review. Cointelegraph subsequently edited their post to say “reportedly” but faced backlash over the blunder. Their apology and follow-up report did little to appease the angry community.
The misreport contributed to around $182.5 million in liquidations over 24 hours. Bitcoin briefly surpassed $30,000 before plunging 8% amid the chaos.
Some observers believe this incident could undermine Bitcoin ETF approval chances by providing the SEC with grounds for denial. However, analyst sentiment largely remains bullish, with Bloomberg predicting a 90% chance of approval by early 2024.
While the market rebounds, this fake news storm has ignited discussion around crypto’s vulnerability to speculation and misinformation. It exemplified how rapidly false claims can propagate and their power to move markets.
Maintaining journalistic integrity and caution against unfounded rumors is crucial. This event was an important reminder to investors and media professionals alike about confirming sources before acting on unverified information.
As the SEC reiterated, their official channels remain the best source for accurate details on regulatory decisions. Expect closer scrutiny of crypto news amid a heightened focus on trust and transparency.
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