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Bitcoin’s 10% jump to $30,000 pulls back after leaked report on Bitcoin ETF is touted false.
- Token briefly spiked on false report of BlackRock ETF approval
- SEC may allow first spot Bitcoin ETFs in US in coming weeks
- Market remains volatile as traders anticipate SEC’s decision
The cryptocurrency market went on a rollercoaster ride on Monday as Bitcoin ($BTC) witnessed a sudden 10% surge, pushing its value to $30,000 for the first time this year. This unexpected rally was attributed to a false report suggesting that BlackRock had secured approval from the US Securities and Exchange Commission (SEC) to launch a spot exchange-traded fund (ETF) focused on Bitcoin.
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The False Surge and BlackRock’s Clarification
However, the euphoria was short-lived. BlackRock promptly denied the report, clarifying that its application for the ETF is still under review by the SEC. Bitcoin managed to close the day 4.4% higher despite this. This market movement showcased the anticipation and volatility surrounding the potential approval of a US spot Bitcoin ETF.
Approximately a dozen other firms are in line hoping to introduce the first US spot Bitcoin ETFs. The general consensus is that the SEC might soon soften its stance on these products to pave the way for broader cryptocurrency adoption. James Seyffart, an ETF analyst at Bloomberg Intelligence, commented on the situation, likening it to a “dry run” for the actual approval. He further added that this event provided traders with a “playbook” for future ETF launches.
SEC’s Stance and Market Sensitivity
The SEC’s hesitancy towards spot Bitcoin ETFs stems from concerns related to fraud and manipulation in the cryptocurrency market. Following Monday’s market movement, the SEC took to X, formerly known as Twitter, to caution the public about believing everything they read online. They emphasized that the most reliable information about the SEC should come directly from the SEC itself.
The crypto community remains divided on the likelihood and timing of spot ETF approvals. While some believe that the approval of spot Bitcoin ETFs could propel Bitcoin’s value to around $32,000, others remain skeptical. Tony Sycamore, a market analyst at IG Australia Pty, expressed doubts about Bitcoin breaking its range highs on its first attempt post-approval.
Ben Laidler, a global markets strategist at eToro, remarked on the market’s premature rally and emphasized its eagerness for positive news. CoinTelegraph issued an apology and announced an internal investigation into the matter.
Future Implications and Market Predictions
The introduction of spot Bitcoin ETFs could serve as a catalyst for other financial products centered around cryptocurrencies. This potential change could lead to a more diverse range of investment opportunities that can cater to both retail and institutional investors.
However, with the potential for growth comes the risk of increased scrutiny and regulation. The crypto industry will need to brace itself for more stringent oversight, ensuring that it adheres to the highest standards of transparency and accountability.
As the crypto world eagerly awaits the SEC’s decision, one thing is clear: the outcome will significantly shape the future of the cryptocurrency market, either propelling it to new heights or challenging its growth trajectory.
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Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.