Crypto market enjoys fresh liquidity after Blackrock’s BTC ETF approval rumours

Crypto market overview: Yesterday, Bitcoin saw a 70-day high in price alongside a massive 65 million dollars worth of liquidation in close to 15 minutes as a crypto news publisher CoinTelegraph reported that the Blackrock Bitcoin ETF has been approved by the SEC. 

However, shortly after, Blackrock clarified that their application is still under review. In a later post by Cointelegraph, the publication apologized for the misreporting and informed that an internal investigation had been initiated.

This event has brought in some fresh air in the crypto market with most of the cryptocurrencies gaining substantially in the last 24 hours. The Crypto Fear and Greed Index has also surged by 5 points to reach 52 in the neutral-positive zone.

Image credit: Alternative.me

While talking to Republic, Shubham Hudda, Senior Manager, CoinSwitch Market Desk, said, “While BTC quickly jumped from $27,000 to almost $30,000 in minutes and then back to $28k, the series of events makes one thing clear—a real spot Bitcoin ETF approval is highly likely to lead to an unprecedented rally. 

“Currently, BTC still looks bullish in charts. However, the current $28,000-30,000 zone has acted as a massive liquidity zone for both bulls and bears in the past. BTC needs to break above the $31,000 - $33,000 zone with volumes for a clean rally to the upside. Otherwise, bears are likely to continue dominating,” Hudda added.

CoinDCX Research Team also highlighted the reason behind the Bitcoin price movement. CoinDCX said “Bitcoin's price spiked toward $30,000 due to a misleading post on X (formerly Twitter) by the crypto news site Cointelegraph, falsely claiming a spot Bitcoin ETF approval. This led to $100 million in liquidations. BlackRock and other sources promptly debunked the claim, and Cointelegraph later issued an apology for spreading inaccurate information. Subsequently, Bitcoin returned to $28,000 and currently holds slightly above that level.”

“Meanwhile, Ethereum (ETH) has gained over 2 per cent in the last 24 hours, hovering around the $1,600 mark after rebounding from a major support level, signalling a mild recovery. Importantly, there are two SEC deadlines for BTC spot ETF approval remaining, both due by the first quarter of 2024. The SEC has delayed the decision in the first two deadlines,” CoinDCX added.

Bitcoin registers a surge of 71 per cent YTD

Edul Patel CEO of Mudrex also talked to Republic about Bitcoin’s year-to-date performance. Patel said, “Bitcoin's price briefly surged to the $30,000 mark before stabilising around $28,000. This price movement was ignited by false reports circulating on X that claimed the SEC had granted approval for Blackrock's spot ETF application. This led to over $100 million in liquidations. Bitcoin has shown remarkable growth, registering a year-to-date increase of 71.31 per cent.” 

Shivam Thakral, CEO, BuyUcoin, said, “The crypto market witnessed unexpected movement on Monday after a rumor circulated in the digital world that the SEC had approved Blackrock’s Bitcoin ETF. The Bitcoin process jumped by almost 10 per cent touching the $30,000 mark while ETH also witnessed a similar jump during the period. The rally was quickly restricted after Blackrock denied any such approval from the SEC and BTC slipped back to the $28,000 level. The market saw liquidations worth $85 million (as per coinglass data) in the past 24 hours.”