A misleading news incident about Bitcoin ETF caused significant turmoil in the cryptocurrency market. On the night of October 16th, Cointelegraph incorrectly reported that the SEC (U.S. Securities and Exchange Commission) had approved the Bitcoin ETF Spot. This inaccurate news drove the price of Bitcoin up to $30,000, only to drop back down to $28,000 when BlackRock, a global investment management company, confirmed that their proposal for a Bitcoin ETF was still under SEC review and had not been approved.
Notably, many investors succumbed to the fear of missing out (FOMO) and hastily purchased Bitcoin when this misleading news surfaced. They rushed in to buy, driving the price of Bitcoin up, only to experience significant losses afterward. According to Coinglass statistics, over 100 million orders for cryptocurrency derivatives were canceled within one hour after the false news was confirmed.
This incident serves as a clear demonstration of the cryptocurrency market’s sensitivity and volatility in response to news, whether accurate or not. However, Bitcoin ETF Spot still has a significant impact on the market, and if the SEC were to genuinely approve it, it could usher in a new wave for the entire industry. This is part of the ongoing development of approving ETFs related to cryptocurrencies. However, this process still awaits an official decision from the SEC, with no specific announcement regarding the approval timeline.
Furthermore, another noteworthy incident involved an individual with a large account (whale) who purchased 20.5 WBTC when false news about the Bitcoin ETF surfaced. When the whale realized the misinformation, a hurried sell-off occurred, resulting in a loss of $49,000 within just 10 minutes. This highlights the volatility and risks within the world of cryptocurrencies.