Bitcoin, Ethereum, Dogecoin Spike As False BlackRock ETF Rumor Sparks $104M Shorts Liquidation: Analyst Says 'Real Tweet Would Do So Much More'

Benzinga - by Mehab Qureshi, Benzinga Staff Writer.

Major cryptocurrencies experienced a significant surge on Monday evening, triggered by a false rumor on X, claiming that the Securities and Exchange Commission (SEC) had approved BlackRock’s (NYSE:BLK) spot bitcoin ETF application.

What Happened: On Monday, BlackRock, an investment management firm, provided an update regarding its ETF application for the iShares Spot Bitcoin ETF.

A BlackRock spokesperson told Benzinga that a decision on the application has not yet been made, and it is still under review by the SEC.

This news has had an immediate impact on Bitcoin, as its value quickly declined to around $28,000

While the rumor may not have had a real impact, the financial implications were tangible. Data from Coinglass, a tracker, reveals that more than $104 million worth of short trading positions, primarily held by traders betting on lower prices, were liquidated within the past 24 hours.

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Top Gainer (24 Hour)

The global crypto market cap currently stands at $1.06 trillion, reflecting an increase of 0.89% in the past 24 hours.

Stocks closed higher on Monday as investors eagerly anticipated a wave of corporate earnings reports. Despite an increase in Treasury yields, traders remained unfazed. The S&P 500 gained 1.06%, finishing the day at 4,373.63, while the Nasdaq Composite saw a 1.2% increase, ending at 13,567.98.

This week marks the heating up of earnings season, with approximately 11% of the companies listed on the S&P 500 set to report their results. Among the noteworthy names scheduled are Johnson & Johnson, Bank of America, Netflix, and Tesla.

See More: Best Cryptocurrency Scanners

Analyst Notes

Michaël van de Poppe, the founder and CEO of MN Trading, suggests that the price of Bitcoin may experience a decline to $26,000.”We must go down to $26K now. Well, we don’t.”

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He said, "Bitcoin is still up more than 4%, despite the wick today. The trend is already upwards, and dips are there to be bought. The ETF will be here at some point, just not today."

Santiment, an on-chain analytics platform, has reported that a recent premature announcement suggesting the approval of an iShares ETF has caused a significant flash spike in the crypto markets. As a result, Bitcoin experienced a brief surge above $30K. “Expect polarized opinions over the inorganic pump all week long.”