Bitcoin Price Briefly Spikes towards $30K Following False Alarm on Spot ETF Approval Leading to High Liquidations

Bitcoin Price Briefly Spikes towards $30K Following False Alarm on Spot ETF Approval Leading to High Liquidations

UTC by Steve Muchoki · 3 min read
Bitcoin Price Briefly Spikes towards $30K Following False Alarm on Spot ETF Approval Leading to High Liquidations
Photo: Depositphotos

While experts forecast the US SEC will approve a spot Bitcoin ETF within the next six months, the BlackRock’s officials confirmed that it has not received a green light on its application.

Bitcoin (BTC) price experienced heightened volatility on Monday, which briefly pushed the mothercoin towards $30k. However, Bitcoin price had since stabilized around $28.2k on Tuesday, but notable damage had already been done to leverage traders. According to market aggregate data provided by Coinglass, more than $111 million was liquidated from the Bitcoin market in the past 24 hours. Notably, the heightened Bitcoin’s volatility was caused by a piece of fake news perpetrated by Cointelegraph that the United States Securities and Exchanges Commission (SEC) had approved the BlackRock Inc’s (NYSE: BLK) iShares spot Bitcoin Exchange Traded Fund (ETF).

The fake news was quickly debunked due to the lack of evidence to support the ointelegraph claims. Additionally, BlackRock confirmed that its spot Bitcoin ETF application is still under review by the SEC. Nonetheless, crypto traders continued to ride the wave, which has seen Bitcoin’s daily average traded volume spike more than double in the past 24 hours to about $28 billion.

Bitcoin Gets a Slight Taste of Spot ETF Approval

As Bitcoin price struggled to rally beyond $28k, the claims of a spot ETF approval saw FOMO traders long the instrument within short periods. According to the latest market data provided through TradingView, Bitcoin’s dominance gained about 1.4 percent in the past five days over the altcoin market to about 51.66 percent. Notably, crypto traders are eagerly awaiting a spot ETF approval in the United States as it will open up floodgates of new money from institutional investors seeking to hedge against high fiat inflation.

The US SEC is currently reviewing a dozen of spot ETF applications and market experts believe the agency could approve all of them at once to avoid giving any fund manager a head start. Moreover, the SEC did not appeal the Grayscale Investments’ ruling which significantly raised the chances of a spot ETF approval.

“Given the pressure the SEC has faced from the courts and the US House Financial Services Committee, it is a question of when, not if, these approvals get the green light. When these approvals happen, it will open up new possibilities for a number of sovereign, pension funds, IRAs, and 401k as well as other institutions who, before this point, may not have had access to digital asset investment opportunities,” said Philippe Bekhazi, the Chief Executive Officer at XBTO Global.

Nonetheless, a former computer intelligence consultant who is popularly known for leaking classified documents belonging to the United States National Security Agency (NSA), Edward Snowden, recently noted during the Bitcoin Amsterdam 2033 conference that a spot ETF approval will lead to more regulatory scrutiny to a path on economic freedom.

Bitcoin News, Cryptocurrency News, Funds & ETFs, Market News, News
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