- October 22, 2023
- Posted by: [email protected]
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In a surprising turn of events, Bitcoin prices surged, briefly crossing the $28,000 mark recently, marking notable gains for the world’s leading cryptocurrency. Bitcoin reached an intraday high of nearly $28,600 around 6 p.m. EST, as reported by CoinDesk.
However, as the market buzzed with speculation regarding this impressive ascent, a fake news report emerged, shaking up the cryptocurrency world. This report, originating from Cointelegraph’s Twitter account, falsely claimed that the U.S. Securities and Exchange Commission (SEC) had greenlit an application for an exchange-traded fund (ETF) submitted by global asset manager BlackRock.
Market analysts and experts weighed in on these developments, highlighting the multifaceted nature of Bitcoin’s recent price surge.
Scott Melker, a crypto investor and analyst known for hosting The Wolf Of All Streets Podcast, emphasized that Bitcoin had already climbed approximately 4% on the day before the fake news report surfaced. According to him, the erroneous news likely propelled Bitcoin’s surge and subsequent retraction. However, he indicated that the preceding price movement could be attributed to insiders with knowledge of the impending rally or a short squeeze.
Tim Enneking, the managing director of Digital Capital Management, also provided insights into the situation. He noted that the fake news coincided with the expiration of the SEC’s deadline to appeal the earlier Grayscale decision, suggesting a strategic connection between the two events. The subsequent short squeeze phenomenon drove Bitcoin’s price up, followed by a rapid drop.
Independent cryptocurrency analyst Armando Aguilar emphasized that multiple factors influenced Bitcoin’s ascent. Notably, a prediction by James Seyffart, an ETF research analyst for Bloomberg Intelligence, played a role. Seyffart’s note indicating a 90% chance of approval for a spot ETF application submitted by investment manager ARK Invest contributed to the positive sentiment.
Looking ahead, Andrew Rossow, an attorney and founder of AR Media Consulting, highlighted the potential implications of a spot Bitcoin ETF approval by the SEC. He stressed the historic difficulty in gaining SEC approval and noted that if a report were to indicate approval of a new spot Bitcoin application, it could significantly impact the entire crypto market. Such an approval would represent a substantial step towards mainstream adoption.
Bitcoin’s recent price surge was a complex interplay of factors, including a false news report, anticipation of spot Bitcoin ETF approvals, and the dynamics of the crypto market. The cryptocurrency world eagerly awaits the SEC’s decision on spot ETF applications, as it could be a game-changer for the industry’s future.
