Bitcoin has risen in vain, BlackRock CEO responded with high emotional intelligence: This is a "retaliatory rebound" against crypto interest

Shortly after the U.S. stock market opened on Monday, foreign media Cointelegraph published an article on the X platform saying that BlackRock's spot Bitcoin ETF had been approved, instantly igniting market enthusiasm. Bitcoin briefly soared 5%, once approaching the $30,000 mark.

However, the tweet was deleted after only 30 minutes, as BlackRock, Bloomberg and other media confirmed it to be fake news, and Cointelegraph also apologized for "a tweet that led to the spread of inaccurate information." Bitcoin fell back to above $28,000.

People who speculated in the cryptocurrency suffered heavy losses. According to data tracked by Lookonchain , a Bitcoin whale spent $600,000 to buy 20.5 WBTC after the news broke, and sold it for only $563,000 after the rumor was debunked.

At the same time, BTC’s violent volatility triggered massive liquidations.

According to CoinGlass data, as of the close of U.S. stocks on Monday, the 24-hour liquidation in the crypto market totaled $189 million, involving 40,521 traders. Of these liquidations, the vast majority were short positions, worth $140 million. Bitcoin transactions accounted for $100 million of these liquidations.

The official X account of the U.S. SEC posted: "Be careful what you read on the Internet. The best source of information about the SEC is the SEC."

BlackRock: Seeing "demand for cryptocurrencies from clients around the world"

BlackRock CEO Larry Fink said in an interview with Fox Business Channel on Monday that the rise in Bitcoin prices triggered by false news of the approval of a spot ETF was actually an example of a "retaliatory rebound" in crypto interest.

Larry Fink has emerged as a supporter of Bitcoin in recent months, repeatedly highlighting its role as a kind of "digital gold."

Fink said he couldn’t comment on the specifics of his firm’s pending spot bitcoin ETF application, but he said he has heard “demand for cryptocurrencies from clients around the world.”

Fink said: "The significance of this rebound is to some extent far beyond the rumors themselves. I think today's rebound is about the pursuit of quality, and all the problems surrounding the war in Israel and global terrorism. I think there are more people pursuing quality, whether it is treasuries, gold or cryptocurrencies, depending on how you look at it? I believe cryptocurrencies will play an important role in this."

Optimistic forecast for spot ETFs

Bitpush previously reported that the U.S. Securities and Exchange Commission said last month that it was launching additional procedures to determine whether the spot Bitcoin ETFs proposed by well-known asset management companies such as BlackRock , Invesco , Valkyrie and Fidelity should be approved or rejected, and the review time will be extended by at least another month.

Bitcoin price saw positive movement last Friday following the SEC’s decision not to appeal a recent court ruling against Grayscale that could force the regulator to review Grayscale’s spot Bitcoin ETF application.

XBTO Global CEO Philippe Bekhazi said the SEC’s decision not to appeal is a critical moment for the cryptocurrency industry.

“Given the pressure the SEC faces from the courts and the U.S. House Financial Services Committee, this approval is a matter of when, not if,” Bekhazi said in a note.

He added: “Once approved, it will open up new possibilities for many sovereign funds, pension funds, IRAs and 401k’s and other institutions that may not have had access to digital asset investment opportunities before.”

The analyst insisted that once the SEC completes its full evaluation, there is a high probability that approval will be obtained in the first quarter of next year. He added: “From then on, we will likely see many other applications approved in 2024, which will be a positive step for institutional adoption of cryptocurrencies.”

ARK Invest CEO and CIO Cathie Wood also commented on the spot Bitcoin ETF filing in an interview with CNBC on Oct. 17. She believes that the SEC’s decision to seek more information could mean that “hopes are rising” for the spot Bitcoin ETF approval.

ARK Invest is one of several asset managers pursuing a spot Bitcoin ETF. Wood began by describing the status of her firm’s application, saying: “Last week, we publicly disclosed that we have responded to the SEC’s request for information regarding our Bitcoin filings, and we have responded, and that is essentially all we can disclose at this time.”

When the reporter said that many industry insiders believe that a spot Bitcoin ETF could be approved before the end of the year, Wood said this could be due to ARK’s own approval deadline. The SEC must make a decision on ARK’s proposal by January 10, 2024. Although ARK’s application is first in line, Wood noted that multiple ETFs could be approved at the same time.

Market data shows that after the fake news was debunked, Bitcoin still maintained a certain increase, rising 4.8% to $28,505 as of the close of the U.S. stock market that day. As investors have high hopes for the approval of the spot Bitcoin ETF this year, BTC has risen 7.4% in the past month and 47.4% in the past year.