Bitcoin ETF On Verge of Approval, Margin Traders Suffer $210M Liquidations Due To Fake Approval News From SEC


Leading investment firms, such as BlackRock, Fidelity, and WisdomTree, are waiting for a spot  Bitcoin ETF approval by the SEC, which they filed last year.

On Monday, January 8, 2024, Bitcoin rose 9% and crossed the $47,000 mark for the first since March 2022. It led to margin traders who bet against Bitcoin highs losing over $100M. OKX exchange traders incurred most of the losses, totaling $84 million, with Binance traders following closely behind at $71 million.

On Monday, the BTC soared as candidates such as BlackRock and Grayscale for a potential Bitcoin ETF submitted their offering fees to the U.S. SEC. It is one of the last steps before the approval of the first-ever Bitcoin ETF in the United States.

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False Bitcoin ETF Approval Tweet Triggers 100s in Million in Liquidations

Less than 24 hours ago, the SEC government account tweeted about approving all Bitcoin ETFs. However, it was false news. Gary Gensler, Chairperson of the U.S. Security and Exchanges Commission, made it clear in his tweet that the @SECGov Twitter account experienced a security breach, leading to the posting of an unauthorized tweet. 

The fake news resulted in manipulation risks and nearly caused the liquidation of $90M worth of BTC in long and short positions. The tweet also pumps BTC prices from $47,680 to $47,800. However, it has since dropped to $45,400.

According to data provided by Coindesk, $500M future positions opened in ten minutes. $50 million long positions were liquidated, and $36 million short positions were affected by the fake tweet.

Another source on twitter reported as much as $135M in liquidations for bullish margin traders, and another $57M in liquidation for the bears playing with borrowed funds.

Surge Due To Bitcoin ETF Pushes Ethereum to 32-Month Low Against BTC

As the Spot Bitcoin ETF approval or rejection news nears, Ethereum (ETH) has experienced a massive decline in price versus Bitcoin (BTC). Since September 7, Ethereum ETH value has decreased 43% against BTC, dropping from 0.08566 BTC to 0.0482 BTC; ether has seen a 41% increase in U.S. dollar value during the corresponding period. However, Bitcoin’s impressive 81% gain overshadows this rise.   

Furthermore, BTC’s share of the crypto market cap has risen from 39% to 54% in the past 14 months. The rise of Bitcoin relative to altcoins such as ETH is due to two distinct narratives: the approval of Bitcoin ETF in the United States and halving, where miners who create new BTC will see their rewards cut in half. Additionally, BTC is set to print a bull crossover last seen in 2016. 

Bitcoin Price Update: $BTC

At the time of writing, $BTC is trading at $45,244, down by 3.54% in the past 24 hours due to the fake news. BTC support is now at $44,400 and 43,600, followed by a resistance of $48,000 and $50,000. The market cap is $888 billion, with a 24-hour trading volume of $39 billion.

Should you Invest In Bitcoin?

Currently, the market is highly volatile; so expect large fluctuations in price on real Spot BTC ETF approval or rejections news. Therefore, it is essential to maintain risk management techniques, and definitely avoid margin trading, so there is zero chance of a possible liquidation.

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