Following the dissemination of incorrect news that the U.S. Securities and Exchange Commission (SEC) had approved Blackrock’s Ishares Bitcoin exchange-traded fund (ETF), short positions amounting to $78.92 million were liquidated. This figure accounted for 57% of the total $136.29 million worth of short positions eliminated within the past 24 hours.
False Information on SEC Ruling Disrupts Bitcoin Market, Wiping Out Millions in Short Investments
On Monday, the crypto-centric media publication Cointelegraph circulated spurious details through social media platform X and its Telegram channel, inducing a surge of over 10% in the value of Bitcoin (BTC) relative to the U.S. dollar.
The digital asset momentarily reached a high of $29,900 per coin, before retracting to $28,100 per unit upon the refutation of the false news. Despite Cointelegraph issuing a subsequent apology, it was insufficient to avert the market turmoil that led to the liquidation of $78.92 million in short positions.
Coinglass data indicates that in the preceding four hours, BTC short positions comprised $71.36 million of the liquidated shorts. Approximately $2.49 million worth of short positions in Solana (SOL) were also liquidated, among other assets.
The $78.92 million made up an astonishing 57% of the total short positions that were liquidated over the course of the last 24 hours. During that same four-hour span, Ethereum (ETH) long positions exceeding $18 million were liquidated as well.
After the false news was exposed, there was a significant decrease in Bitfinex short positions. Simultaneously, long positions on Bitfinex had initially escalated before the clarification of the misleading news, but have since diminished.
The unfounded news incident resulted in a large number of traders being liquidated, thereby potentially quelling the speculative fervor surrounding the genuine decision. The most noteworthy liquidations involved cryptocurrencies such as BTC, ETH, XRP, BNB, and SOL.
Your thoughts on the impact of this false news event on short traders are highly valuable. Please share your insights and perspectives on this matter in the comments section below.
Frequently Asked Questions (FAQs) about SEC Approval Fake News
What event led to the liquidation of $78.92 million in Bitcoin short positions?
The liquidation was triggered by the circulation of false news that the U.S. Securities and Exchange Commission (SEC) had approved Blackrock’s Ishares Bitcoin exchange-traded fund (ETF).
Which media outlet was responsible for disseminating the false information?
The crypto-centric media publication Cointelegraph was responsible for disseminating the incorrect information via social media platform X and its Telegram channel.
How did the Bitcoin market react to the false news?
The market experienced a surge of over 10% in Bitcoin (BTC) value against the U.S. dollar. The digital asset momentarily reached a high of $29,900 per coin before declining to $28,100 per unit after the news was refuted.
What was the impact on other cryptocurrencies besides Bitcoin?
Apart from Bitcoin, approximately $2.49 million worth of short positions in Solana (SOL) were liquidated. Long positions in Ethereum (ETH) exceeding $18 million were also liquidated within the same four-hour timeframe.
How much of the total short positions liquidated in 24 hours did the $78.92 million represent?
The $78.92 million accounted for 57% of the total $136.29 million worth of short positions that were liquidated in the last 24 hours.
What was the reaction on Bitfinex following the exposure of the false news?
Following the revelation of the false news, short positions on Bitfinex experienced a significant decrease, while long positions initially increased but have since declined.
What cryptocurrencies faced the most substantial liquidations?
The most noteworthy liquidations occurred in cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Binance Coin (BNB), and Solana (SOL).
Did Cointelegraph issue an apology for the false information?
Yes, Cointelegraph issued an apology after the false information was debunked. However, the apology was insufficient to prevent the market upheaval and the subsequent liquidation of significant short positions.
More about SEC Approval Fake News
- U.S. Securities and Exchange Commission (SEC)
- Blackrock Official Website
- Coinglass Market Data
- Bitfinex Exchange
- Solana Official Website
- Ethereum Official Website
- Bitcoin Liquidation Explained
- Cryptocurrency Market News