The Bitcoin price saw a spike of around 15% following fake news of a BlackRock ETF being registered for trading with the US Securities and Exchange Commission (SEC). The market-wide liquidations as a result of the price jump topped $100 million over a 13-minute period.
The fake news was spread by a fake Twitter account posing as BlackRock CEO Larry Fink. The tweet said that the company was going to launch a Bitcoin ETF and provoked a sharp increase in buying activity and a consequent price spike.
Following the spike, the price of BTC dropped back down to its original levels and the liquidations started to become visible. According to data from crypto market monitoring platform Bybt, the total amount of liquidations totaled $113.21 million.
The incident highlights the fact that fake news continues to be a powerful influencing factor in the cryptocurrency market. As cryptocurrencies continue to grow in popularity and influence, it is critical to have reliable sources of information and to be able to separate fact from fiction. Otherwise, these sorts of incidents could occur in the future and potentially lead to large losses or corrections.