In a tumultuous day for the cryptocurrency market, Bitcoin experienced a roller-coaster ride in response to a Bitcoin ETF fake news about the approval of a spot Bitcoin ETF.
Source: Greeks.live
BTC‘s Wild Price Swing Amid Bitcoin ETF Fake News
Early in the U.S. trading day, an inaccurate post claimed that BlackRock’s proposed spot Bitcoin ETF had gained approval, triggering a surge in trading activity and a 10% spike in Bitcoin‘s price, briefly reaching the $30,000 mark. The Bitcoin ETF fake news prompted significant market volatility, with Bitcoin’s value oscillating by as much as 10% within a single day before settling back to its pre-news price.
According to Greeks.live, he misleading information not only impacted Bitcoin‘s price but also led to a spike in major maturity option IVs within the three-month period. BTC short- and intermediate-term IVs rose by 5%, while ultra-short-term IVs increased by nearly 20%. However, long-term option IVs expiring at the year’s end and beyond remained unchanged.
Ethereum Unshaken as Bitcoin‘s Volatility Soars
Interestingly, Ethereum (ETH) remained largely unaffected, with its major maturities showing no significant changes. The distribution of options trades revealed that Bitcoin’s growth was fueled by short-term calls in the 28,000 to 30,000 range, causing challenges for options players.
Confirmation from reputable sources, including Fox News Journalist Eleanor Terrett, Bloomberg analyst James Seyffart, and CoinDesk, contradicted the false report. They clarified that the BlackRock spot Bitcoin ETF is still under review by the Securities and Exchange Commission (SEC).
Despite the market turbulence, Bitcoin managed to stabilize around $28,000 after the correction, highlighting the resilience of the cryptocurrency in the face of misinformation and speculative trading.