Fake News Triggers $190M Crypto Liquidation: What Happened and Why — BitKan Insights
A fake news triggered a “bloodbath” within the crypto market. More than $190M worth of futures were liquidated within 30 minutes.
The BTC price briefly topped $30,000 on crypto exchanges following a false post on social media platform X.
The rumour, published on Cointelegraph’s X account, led to a $2,000 price spike, causing widespread market turbulence and resulting in liquidations exceeding $100 million within the hour. The original tweet was subsequently modified and eventually deleted shortly after 10:00 pm (UTC +8).
Lookonchain tweeted that fake news about the Bitcoin Spot ETF caused many users to FOMO and suffer losses. In one case, a whale purchased 20.5 WBTC at a cost of 613,201 USDC and quickly sold it for 563,970 USDC after confirming the false news, losing over $49,000 in just 10 minutes
Cointelegraph then posted an apology and said that the news tip originated from an unconfirmed screenshot posted by an X user who claimed it came from a Bloomberg Terminal. Cointelegraph did not ultimately publish an article containing this misinformation, but deeply regrets the erroneous posting of this information on X (formerly Twitter) and its repercussions.
The SEC and BlackRock have also responded in the wake of the drama, with the SEC’s official X account stating, “Be careful what you read on the Internet, the best source of information about the SEC is the SEC,” and BlackRock CEO Larry Fink appearing on FOX’s Claman Countdown.
On FOX’s “Claman Countdown,” BlackRock CEO Larry Fink said, “This is an example of the pent-up interest in cryptocurrencies, and we’re hearing from clients around the world that there’s demand for cryptocurrencies. The significance of this rally goes well beyond the rumours themselves to some extent, with cryptocurrencies playing a role in the ‘quest for quality’.” However, he declined to comment on the status of the application for BlackRock’s iShares Bitcoin Spot ETF.
Conclusion
As a milestone event for the crypto industry, the approval of the Bitcoin Spot ETF means that the legal status of Bitcoin as a financial product has been legally recognised and will provide an avenue for traditional financial institutions and large capital to enter the crypto market. It is therefore not surprising that the news of the approval of the Bitcoin Spot ETF is so credible, given the multiple factors such as the approval process moving forward, optimistic market forecasts, and a much-needed positive push from the bears.
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