The sudden spike in Bitcoin price on Monday as fake spot Bitcoin ETF approval news surfaced has continued to baffle the crypto community. Bitcoin’s whirlwind featured an abrupt surge to $30,000, triggered by rumors of the SEC approving Blackrock’s iShares Bitcoin spot ETF.
However, this excitement quickly turned to disappointment as Blackrock denied the claims, sending Bitcoin plummeting back to $28,100 in minutes.
The incident, resulting in a cascade of liquidations across the crypto market, has been met with widespread criticism from experts who firmly believe the ultimate objective was market manipulation for the benefit of a select few.
Prominent crypto analyst Gareth Soloway weighed in on this situation, describing it as a “pump and dump” during a recording on Tuesday. Soloway asserted that such a drastic price movement couldn’t have occurred without someone intentionally spreading false information for personal gain.
Soloway further expressed his concern over the situation, noting that such events could undermine trust in the crypto space, calling for a regulatory body’s intervention.
That said, while the “pump and dump” incident had market-wide consequences, Soloway observed that the Bitcoin chart had indicated a positive bias leading up to the events. And despite not providing a clear target he highlighted that the chart provided signals for a potential surge.
That said, CoinTelegraph, the source that initially reported this false information, causing an immediate market response, removed the post and issued an apology. Shortly after the incident, Kristina Lucrezia, the Editor-in-Chief of CoinTelegraph, expressed her regrets at a Dubai event, stating, “This was a disaster, and it serves as an example of what must not occur.”