In a rollercoaster ride that sent shockwaves through the cryptocurrency market, Bitcoin (BTC) experienced an abrupt drop of 8%, plunging below $27,000, after misinformation about the approval of the iShares Bitcoin ETF circulated.
The sudden price plunge occurred after a headline on Reuters, sourced from Benzinga, erroneously claimed that the Securities and Exchange Commission (SEC) had granted approval to the ETF application by BlackRock, one of the world’s largest asset management firms. Many investors and traders took the news at face value, causing Bitcoin’s price to briefly touch above $30,000 on some exchanges in anticipation of institutional investment pouring into the cryptocurrency market.
However, the excitement was short-lived as BlackRock promptly issued a statement contradicting the reports. Fox Business reporter Eleanor Terrett clarified that BlackRock denied the approval claims, asserting that their application remained under review. Forbes and other reputable news outlets subsequently confirmed that BlackRock’s spot Bitcoin ETF application was still pending, dispelling the initial enthusiasm.
CoinTelegraph, which was among the first to report the news, faced backlash for not verifying their sources thoroughly. They later amended their post by adding the word “reportedly” to their claim, a move that was met with criticism and humorous remarks from industry observers. James Seyffart, a prominent ETF analyst, quipped, “They edited the tweet to add ‘reportedly’ hahaha. Guys…you reportedly reported the report!”
In response to the growing controversy, CoinTelegraph issued an apology for disseminating fake news. Their mea culpa tweet on the false BlackRock Bitcoin ETF report was met with an overwhelming wave of comments and reactions on social media platforms, highlighting the cryptocurrency community’s vigilance and scrutiny.
The cryptocurrency market, known for its volatility, saw a swift correction once the false news was debunked. Despite the setback, experts remain optimistic about the future of Bitcoin and the potential for a spot Bitcoin ETF approval. Bloomberg analysts have assigned a 90% likelihood of a spot Bitcoin ETF gaining SEC approval by 10 January 2024. Recent developments from industry players like ARK and 21Shares indicate constructive engagements with the U.S. Securities and Exchange Commission (SEC), suggesting that approval may be on the horizon.
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