Bitcoin Jumps, Then Dumps to $45K as Fake News About Spot Bitcoin Approval Liquidates $50M

Bitcoin experienced significant volatility during Tuesday’s trading session as fake news circulated about the approval of spot bitcoin exchange-traded funds (ETF) by the U.S. Securities and Exchange Commission (SEC). The price of BTC initially soared to a 19-month high of $47,900 in response to the news, only to plummet nearly 6% to $45,100 once it was revealed that the SEC’s account had been compromised and the news was false. This sudden price swing resulted in over $50 million worth of derivatives trading positions being liquidated within an hour. Currently, BTC is trading just below $46,000, down approximately 2% in the past 24 hours. Interestingly, this was the second instance on the same day where fake news triggered market volatility, with dogecoin also experiencing a jump and subsequent decline based on false news. Analysts have suggested that these events prove that bitcoin’s upside potential may be limited until there is actual ETF approval, leading some to believe that it is now Ethereum’s turn to shine.