- Bitcoin experienced a short-lived moment close to the $30K breakpoint.
- The sharp gain was driven by fake news.
- Users have lost money in FOMO.
Crypto users were treated to ephemeral joys on October 16 following fake news that the U.S. securities regulator had approved a Bitcoin Spot ETF.
In a now-deleted tweet, media outlet Cointelegraph alleged that the Securities and Exchange Commission (SEC) had approved the Bitcoin spot ETF application for iShares, a report that verifiable sources couldn’t substantiate.
Bitcoin Price Shoots Momentarily, Liquidations Follow
According to live data by CoinGecko, moments after the fake news spread hastily, Bitcoin’s (BTC) price shot to $29,483 before dropping sharply to $27,918.
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What followed next was a liquidation spree to $64.5 million within just one hour.
Although Cointelegraph edited the tweet a few minutes before deleting it, the damage had already been done.
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Adam Cochran, an experienced fintech executive and angel investor, called out the media outlet for what he termed a “blatant scam” and urged the company to provide documentation on where the ETF approval report came from.
The fake news didn’t just affect BTC’s price; it had a ripple effect across the industry, evidenced by how users have lost money.
Users Lose Money in FOMO
Driven by the fear of missing out (FOMO), users have lost a lot of money while trying to capitalize on the “good news,” which seemed like a reprieve after endless months of unprecedented crypto winter.
According to a Twitter (X) update by Lookonchain, one whale lost almost $49,000 in 10 minutes after spending $631,201 in USDC to acquire 20.5 $WBTC, which he quickly sold for 563,970 USDC, probably after realizing that the news was indeed fake.
Read more Bitcoin whale news:
Bitcoin Whale Wallets Pass 2019 All-Time High
Read more about the SEC and Grayscale’s quest for a Bitcoin ETF:
SEC’s Green Light Allows Grayscale’s Quest for Bitcoin ETF
