Cointelegraph’s False Report Sparks Bitcoin Surge Amidst SEC and Blackrock Speculation

B. Ali
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In a recent development, the cryptocurrency news site Cointelegraph reported on Monday that the U.S. Securities and Exchange Commission (SEC) had purportedly approved BlackRock’s iShares Bitcoin spot exchange-traded fund (ETF). This unverified information rapidly spread, leading to a surge in the value of Bitcoin (BTC) by over 10% against the U.S. dollar. Interestingly, neither the SEC nor BlackRock had officially confirmed this news.

In the volatile world of cryptocurrencies, where uncertainty is normal, a completely false story triggered a significant market rally. This false news claimed that BlackRock’s Bitcoin ETF had received regulatory approval. Consequently, Bitcoin’s price surged from $27,700 per coin to a robust $29,900 after Cointelegraph shared the report on social media.

However, this news ultimately proved to be untrue. A reporter from Fox News, Eleanor Terrett, uncovered the truth when BlackRock stated that the news was entirely false, clarifying that their ETF application was still under review.

Response to False News About BlackRock’s Bitcoin ETF Approval

BlackRock reiterated to The Block that the news was indeed false, stressing that their ETF application was still pending approval from the securities regulator. Bloomberg’s ETF expert, James Seyffart, described Cointelegraph’s social media post as “fake news” since he couldn’t find any credible information to support it.

In reaction to the controversy, Cointelegraph took several steps. They removed the social media post on platform X, issued corrections in a Telegram post, and included the word “reportedly” in their statement. Additionally, that specific Telegram post was also removed.

The Impact of Fake News on Bitcoin’s Price and the Implications of a Real Approval

Following the dissemination of the false news, Bitcoin (BTC) briefly surged to nearly $30,000 per coin but swiftly retraced to under $28,000 once the truth was revealed. Now, there is widespread speculation about how a genuine approval will impact the markets.

After realizing their mistake, Cointelegraph issued an apology and admitted to their part in spreading inaccurate information about the BlackRock Bitcoin ETF. They stated that they are conducting an internal investigation and are dedicated to transparency. They made a commitment to share the investigation’s findings with the public within three hours.

Bitcoin briefly surged to nearly $30,000 but subsequently dropped to under $28,000 once the fake news was debunked. Now, there’s widespread curiosity about how the market will respond when an actual approval takes place. Cointelegraph has issued an apology for their error and is investigating what went wrong, with a promise to share their findings soon.

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.