Bitcoin Price Spikes Following Fake BlackRock ETF Announcement: $100 Million Liquidated
The price of Bitcoin spiked sharply following a fake announcement claiming that BlackRock, one of the world’s largest asset management companies, was launching an exchange-traded fund (ETF). The false announcement allegedly came from a spoofed Twitter account posing as BlackRock’s official account.
The hoax tweet spurred a surge in the price of Bitcoin, which reached $9,000 before the news was debunked. As a result of this sudden increase, approximately $100 million was liquidated as market makers and retail traders closed their positions. The spike was short-lived, as the price soon dropped again following the news.
It’s unclear who was behind the hoax or what their motives were, though the incident is yet another example of the volatility and risks associated with trading cryptocurrencies. Digital asset investors should always be aware of the risks of manipulation and fake news when trading. Additionally, it serves as a reminder to always double check sources before making investment decisions.