Cointelegraph Corrects Bitcoin ETF Approval Misreport

Last Updated October 17th 2023
3 Min Read

Key Takeaways -

  • Market volatility was triggered by the false news, leading to quick liquidations.
  • A significant investor, known as a "Whale," made a costly mistake due to the misinformation.
  • The event stresses the importance of verifying information from reliable sources before acting.

Cointelegraph has publicly apologized for a tweet that incorrectly claimed the U.S. Securities and Exchange Commission (SEC) had approved BlackRock's iShares Bitcoin Spot ETF. The company is currently undergoing an internal investigation and has committed to sharing the results within a three-hour window.

The Tweet That Shook the Crypto World

The crypto community found itself in turmoil after a tweet from Cointelegraph falsely stated that the SEC had approved BlackRock's iShares Bitcoin Spot ETF. This misinformation led to significant market volatility, serving as a cautionary tale for traders and investors alike.

Immediate Repercussions

Data from Coinglass revealed that the crypto community experienced a staggering $100 million in liquidations within just one hour of the tweet. Of this amount, $31 million were long orders, and $73 million were short positions. The market's swift and severe reaction underscores both the bull case and the inherent risks in cryptocurrency trading.

A Lesson in Hasty Investments

A Lesson in Hasty Investments

A crypto "Whale" took significant action based on the false information. The investor initially spent 613,201 USDC to acquire 20.5 WBTC. However, upon realizing the news was incorrect, they sold the WBTC for 563,970 USDC, incurring a loss. This incident serves as a stark reminder of the importance of due diligence and understanding market cap dynamics.

How the Community Reacted

The false tweet had a ripple effect across the crypto landscape. Initially, it led to an upward rally in Bitcoin's price. However, this was followed by a sharp decline, indicating a deflationary pattern. This episode has left many investors questioning the reliability of news sources, especially when making significant financial decisions.

Proceed with Caution

The crypto market is highly sensitive and reacts quickly to news. Even experienced investors can make costly mistakes if they act on incorrect information. Always double-check facts from trusted sources before making any investment decisions. This incident serves as a wake-up call about the importance of reliable information in the volatile world of cryptocurrencies.

Read More: