Bitcoin Soars to $30,000 Monday After Spot ETF Rumor, Then Crashes, Liquidating $81M In Positions

Bitcoin BTC/USD experienced a price surge from $27,900 to $30,000 Monday due to a misleading announcement about a spot ETF approval on the social platform X, formerly known as Twitter.

This misinformation resulted in approximately $100 million in liquidations within an hour.

The price move in the leading cryptocurrency underscores the importance of discussions at events like Benzinga's Future of Digital Assets conference on Nov. 14 in New York City. 

Although the erroneous report of an ETF approval was removed after about half an hour, its brief presence was sufficient to significantly influence the cryptocurrency's price.

We apologize for a tweet that led to the dissemination of inaccurate information regarding the Blackrock Bitcoin ETF.

An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is…

— Cointelegraph (@Cointelegraph) October 16, 2023

Bitcoin's value eventually dropped to $28,000 amid doubts raised by market experts. 

A Blackrock BLK spokesperson told Benzinga: "The iShares Bitcoin ETP application is still under review by the SEC."

Data from CoinGlass reveals the sudden price hike to $30,000 led to the liquidation of short positions worth $81 million, while the subsequent price drop resulted in $31 million in long position liquidations.

Also Read: Bitcoin To Overtake Gold, Silver? Prominent Crypto Analyst Makes Bold Claim

Liquidation occurs when a trading platform forcibly terminates a trader's leveraged stance due to the partial or complete depletion of their initial margin, typically when traders can't uphold the margin prerequisites for such a position.

The SEC's official website does not list any approvals for a spot bitcoin ETF.

Interestingly, the SEC does not intend to contest its defeat in a case against Grayscale, which Benzinga reported Friday. 

This development is believed to enhance the likelihood of the Grayscale Bitcoin Trust GBTC transitioning into a spot ETF.

Following the SEC's recent decision regarding Grayscale, Bitcoin observed a 4% increase in its value during Asian trading hours on Monday.

Read Next: Crypto Analyst Says Altcoins Could See Steeper Declines Than Bitcoin

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