Bitcoin Hits $30,000: Why Did Bitcoin Pump?
In a whirlwind of speculation and drama, Bitcoin soared from $27,000 to $30,000 in mere minutes. Undoubtedly, this volatility was fueled by a now-debunked report from CoinTelegraph, stating that BlackRock’s Bitcoin ETF had secured SEC approval. The news spread like wildfire, causing a seismic shift in market sentiment. Within no time, leading media outlets like Reuters also echoed this groundbreaking announcement. However, the euphoria was short-lived. Soon after, the claim was debunked, sending Bitcoin tumbling back down to $28,000.
Interestingly, this frenzy liquidated over $71 million in Bitcoin leveraged positions and more than $15 million in Ethereum leveraged positions. Bloomberg analyst Eric Balchunas was among the first to question the veracity of the report. He tweeted his skepticism, emphasizing the importance of verifying the source.
While I expect to wake up one day in next couple months to a headline just like this, this seems a bit ahead of schedule. Trying to confirm source now. Stay tuned.. https://t.co/S1boYMUWus
— Eric Balchunas (@EricBalchunas) October 16, 2023
CoinTelegraph’s Misstep and Market Manipulation
Later, it was revealed that a social media intern at CoinTelegraph was the trigger for this chaos. Surprisingly, the intern allegedly profited a staggering $2 million from a leveraged position he had set up prior to tweeting. CoinTelegraph subsequently issued an apology, announcing an internal investigation and promising to share their findings within three hours. This raises questions about ethical journalism and the responsibility of media outlets in shaping market behavior.
This you? pic.twitter.com/itGbMEKByV
— Rollbit (@rollbitcom) October 16, 2023
The entire episode sheds light on the palpable tension and FOMO (Fear of Missing Out) dominating the crypto market. Moreover, it magnifies the anticipation surrounding the next Bitcoin halving, slated to happen in just six months. Clearly, market manipulation remains a significant issue in the crypto space. Consequently, it is imperative for investors to always verify sources before jumping in, no matter the investment size.
JUST IN: Cointelegraph issues apology after falsely announcing that BlackRock’s Spot #Bitcoin ETF was approved by the SEC. pic.twitter.com/kPxlTY4Oi5
— Watcher.Guru (@WatcherGuru) October 16, 2023
Be Cautious of Market Manipulation
As the crypto landscape continuously evolves, this incident serves as a stark reminder of its unpredictability and the potential for market manipulation. The questions raised are as complex as they are significant: How can we ensure ethical reporting in a field rife with speculation? To what extent does media influence shape market volatility? As we inch closer to the next bull cycle and Bitcoin halving, caution and verification must be the buzzwords guiding every investor’s strategy.
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Filed under: Bitcoin - @ October 16, 2023 6:12 pm