Bitcoin has experienced a lonely rise, BlackRock CEO responds with high emotional intelligence This is a ‘revenge rebound’ against the interest in encryption.

Bitcoin's Solitary Surge BlackRock CEO Reacts with Exceptional Emotional Intelligence - A 'Retaliatory Rebound' Against Encryption's Popularity

Author: Mary Liu, LianGuai BitpushNews

Shortly after the US stock market opened on Monday, foreign media Cointelegraph reported on the X platform that BlackRock’s Bitcoin spot ETF had been approved. The market enthusiasm was instantly ignited, and Bitcoin briefly surged 5%, approaching the $30,000 mark.

However, this tweet was deleted after only 30 minutes because BlackRock, Bloomberg, and other media outlets confirmed it as fake news. Cointelegraph also apologized for the “misleading tweet” that caused the spread of inaccurate information. Bitcoin fell back above $28,000.

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The people trading 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, but after the rumor was debunked, they sold it for only $563,000.

Meanwhile, the violent fluctuations of BTC triggered a large-scale liquidation.

According to CoinGlass data, as of the close of the US stock market on Monday, the total 24-hour liquidation volume in the cryptocurrency market was $189 million, involving 40,521 traders. Most of these liquidations were short positions, worth $140 million. Bitcoin trades accounted for $100 million of these liquidations.

The official SEC X account in the US posted: “Be careful of what you read on the internet. The best source of information regarding the SEC is the SEC itself.”

BlackRock: Seeing “demand for cryptocurrency from customers around the world”

BlackRock CEO Larry Fink said in an interview with Fox Business Channel on Monday that the Bitcoin price surge caused by the false news of the spot ETF approval is actually an example of a “revenge rebound” of interest in cryptocurrency.

Fink has become a supporter of Bitcoin in recent months, repeatedly emphasizing its role as a “digital gold”.

Fink stated that he cannot comment on the specific details of the pending Bitcoin ETF spot application by his company, but he has heard the “demand for cryptocurrency from customers around the world.”

Fink said, “The significance of this rebound goes far beyond the rumors themselves. I believe that today’s rebound is about pursuing quality, encompassing all issues surrounding the Israeli war and global terrorism. I think more people are pursuing quality, whether it’s government bonds, gold, or cryptocurrency. It depends on how you see it. I believe cryptocurrency will play an important role in this.”

Optimistic Outlook for Spot ETF

Previously reported, the U.S. Securities and Exchange Commission (SEC) announced last month that it is initiating additional procedures to determine whether spot Bitcoin ETF proposals from well-known asset management companies such as BlackRock, Invesco, Valkyrie, and Fidelity should be approved or denied. The review period will be extended for at least another month.

Last Friday, after the SEC decided not to appeal the recent Grayscale ruling, the price of Bitcoin showed a positive trend, which may force regulatory agencies to review Grayscale’s spot Bitcoin ETF application.

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

In a report, Bekhazi stated, “Given the pressure the SEC faces from the court and the U.S. House Financial Services Committee, this approval is only a matter of when, not if.”

He added, “Once approved, it will bring new possibilities to many sovereign funds, pension funds, IRAs and 401(k)s, and other institutions that may not have had the opportunity to invest in digital assets before.”

The analyst insists that once the SEC completes its comprehensive assessment, it is likely to be approved in the first quarter of next year. He added, “From then on, we are likely to see many other applications approved by 2024, which will be a positive step for institutional adoption of cryptocurrency.”

Cathie Wood, CEO and CIO of ARK Invest, also commented on the filing of spot Bitcoin ETFs in an interview with CNBC on October 17th. She believes that the SEC’s decision to seek more information may mean that there is “increased hope” for the approval of spot Bitcoin ETFs.

ARK Invest is one of several asset management companies seeking spot Bitcoin ETFs. Wood first described the status of her company’s application and said, “Last week we publicly disclosed that we responded to the SEC’s request for information about our Bitcoin filing, and we have responded. Basically, what we can reveal at the moment is that.”

When asked about the industry’s belief that spot Bitcoin ETFs may be approved before the end of this year, Wood said it may be due to ARK’s own deadline for approval. The SEC must make a decision on ARK’s proposal by January 10, 2024. Although ARK’s application is the first in line, Wood pointed out that multiple ETFs may be approved simultaneously.

Market data shows that despite the debunking of fake news, Bitcoin has still maintained a certain increase, rising 4.8% to $28,505 at the close of the US stock market that day. Due to investors’ high hopes for the approval of a physical Bitcoin ETF this year, BTC has risen 7.4% in the past month and 47.4% in the past year.

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