Cryptocurrency Market Reacts to False ETF Approval News

In the ever-volatile realm of cryptocurrencies, a single piece of fabricated news managed to send shockwaves through the market. On a bustling Monday, Cointelegraph, a prominent cryptocurrency-focused news platform, broadcasted a sensational claim that the U.S. Securities and Exchange Commission (SEC) had given its approval for Blackrock’s Ishares spot bitcoin exchange-traded fund (ETF). The news, unverified and yet spread like wildfire, led to a significant upswing in Bitcoin’s value, soaring over 10% against the U.S. dollar. This surge took Bitcoin’s price from $27,700 per coin to a substantial $29,900, all following a viral social media post on platform X.

However, this surge was based entirely on false pretenses. Fox News reporter Eleanor Terrett swiftly debunked the news, stating that Blackrock had confirmed the information as “false.” Terrett clarified that the ETF application was still under the SEC’s scrutiny, dispelling the misinformation that had caused the market uproar. Further validations of this falsehood came from reputable sources, including a statement from Blackrock to The Block, emphasizing that their ETF application was still pending approval, and a remark from Bloomberg ETF expert James Seyffart, labeling Cointelegraph’s social media post as “fake news” due to the lack of corroborating information.

In response to the brewing controversy, Cointelegraph took corrective measures. The publication promptly removed the misleading social media post on platform X, edited a post on Telegram, and added the qualifier “reportedly” to the statement to signify the unverified nature of the information. The specific Telegram post in question, which had contributed to the misinformation, was also retracted.

Bitcoin’s Meteoric Rise and Abrupt Fall

Following the dissemination of this false news, Bitcoin’s price experienced a meteoric rise to nearly $30,000, only to lose its newfound ground once the truth was revealed. Currently, the price has retraced, dipping below the $28,000 per coin mark. This incident raised a pivotal question among market observers: in the wake of the impact caused by the false news, how will a legitimate approval, when it eventually happens, influence the cryptocurrency markets?

In the wake of the revelation that the news of Blackrock’s Bitcoin ETF approval was unfounded, Cointelegraph swiftly took responsibility for its role in the misinformation. The news platform issued a public apology, expressing deep regret for the tweet that had led to the widespread dissemination of inaccurate information regarding the Blackrock Bitcoin ETF. The gravity of the situation was not lost on Cointelegraph, which acknowledged the significant impact false news can have on the market and investors.

“We deeply regret the tweet that led to the spread of inaccurate information regarding the Blackrock Bitcoin ETF,” the statement read, reflecting the publication’s recognition of the serious consequences of their actions.

In an effort to rectify the situation and rebuild trust with their readership and the wider cryptocurrency community, Cointelegraph took immediate action. The news organization assured the public that a thorough internal investigation was already underway. This commitment to introspection underscored their dedication to transparency, a crucial quality in the realm of journalism, especially when it comes to reporting financial news that can sway markets and impact investments.

Furthermore, Cointelegraph pledged to share the findings of their investigation promptly. Within the next three hours, the publication promised to deliver a comprehensive report detailing the specifics of the incident, including the circumstances that led to the erroneous publication of the news.