A fabricated news report set the cryptocurrency world abuzz as it erroneously claimed that the U.S. Securities and Exchange Commission (SEC) had granted approval to BlackRock’s iShares spot bitcoin exchange-traded fund (ETF). The misinformation rapidly circulated on social media, triggering Bitcoin’s price to surge from $27,700 per coin to nearly $30,000. Crypto Michael, a widely followed cryptocurrency analyst, brought attention to the situation in a recent conversation on his YouTube channel.
The catalyst for this recent frenzy was a controversial tweet by a prominent cryptocurrency news source, which falsely claimed that BlackRock’s ETF had secured regulatory approval. Michael expressed concern over the tweet and emphasized the potentially detrimental impact of fake news in the crypto industry. While the tweet created an initial surge in the markets, it also led to the liquidation of around $100 million worth of positions, leaving traders grappling with the consequences of misinformation.
Bitcoin’s price skyrocketed by more than 10% against the U.S. dollar after the fake news went viral. However, it was soon revealed that the news was entirely unfounded. BlackRock itself categorically denied the report, emphasizing that the ETF application was still awaiting approval from the securities regulator. Other experts echoed these sentiments, with Bloomberg ETF analyst Eric Balchunas calling the report “false info.”
It isn’t true. Someone spread false info looks like. @Cointelegraph care to say where you heard this? pic.twitter.com/ezaCY6d6c1
— Eric Balchunas (@EricBalchunas) October 16, 2023
Regarding the outlook for Bitcoin and the broader crypto market, Crypto Michael maintained an optimistic stance. He stressed that the market remained undervalued, particularly given recent developments such as the SEC’s decision not to appeal the Grayscale case. He projected a potential price range for Bitcoin, suggesting it could reach between $45,000 and $50,000, drawing comparisons to previous market cycles.
Crypto Michael pointed out that Bitcoin’s current position indicated a unique opportunity for further upward momentum. Despite the recent rally triggered by the fake news, the cryptocurrency’s valuation appeared to be on an upward trajectory. He emphasized that Bitcoin’s price was poised to continue its ascent, noting the significance of the recent rally and consolidation, along with the overall market undervaluation.
It was previously reported that Grayscale Investments partnered with NYSE Arca to transform their Grayscale Ethereum Trust into a spot Ethereum ETF. The leading global crypto asset manager announced this pivotal development as it submitted Form 19b-4 to the U.S. Securities and Exchange Commission (SEC).
