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Key Takeaways:
- CoinTelegraph posted a fake news about SEC approving BlackRock’s sport Bitcoin application
- The post sent traders on a buying frenzy, sending BTC price to $30,000
- However, it subsequently tanked after reports emerged that the news is fake
YEREVAN (CoinChapter.com) — The price of Bitcoin (BTC) surged from $30,000 after CoinTelegraph falsely claimed the Securities and Exchange Commission (SEC) had approved Blackrock’s spot Bitcoin ETF application.
In what seems to a be curious case of spreading disinformation, the person running the Twitter (X) account of the news agency did not verify the content before posting.
However, the excitement didn’t last long. Experts were quick to point out that the SEC had not given its approval.
Fox News reporter Eleanor Terret was among those to point out that the news was factually incorrect.
“BlackRock has just confirmed to me that this is false. Their application is still under review,”
she wrote.
However, despite several people pointing out this fact, CoinTelegraph edited the original post to add the word “Reportedly” at the end.
Only after facing growing criticism, they deleted the post. The team also informed that they would investigate the incident.
“We apologize for a tweet that led to the dissemination of inaccurate information regarding the Blackrock Bitcoin ETF. An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is concluded within 3 hours,”
they posted.
However, it was already late. The post had done enough damage.
Bitcoin (BTC) price rises and tanks
The false CoinTelegraph post on the BlackRock spot Bitcoin ETF remained for nearly 30 minutes. However, it was enough to send traders into a buying frenzy.
After rallying to the $30,000 mark, it began to tank. At the time of writing, the leading crypto trades slightly above $28,000.
According to reports, the fake CoinTelegraph post caused more than $104 million to be liquidated on centralized derivatives exchanges.
Recently, ARK Invest and 21Shares updated their spot BTC ETF applications. These developments fueled speculations that the SEC may soon approve a Bitcoin ETF.
Some believe that the approval will come no later than January 2024. Perhaps it was these speculations, coupled with CoinTelegraph’s reputation, that made made investors believe the news.
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