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Fake BlackRock ETF News Caused This Crypto Whale To Lose Big

Summary:
On-chain data shows that a wealthy crypto investor lost ,000 on a bad trade following false reports about BlackRock receiving approval on its Bitcoin ETF application. As noted by analysts from Lookonchain on Monday, an anonymous whale traded 3,201 in USDC for 20.5 Wrapped Bitcoin (WBTC) using 1Inch shortly after the initial report dropped. At first, Bitcoin’s price had cracked above ,000 in light of the news. However, after sources at Blackrock confirmed the news was fake, Bitcoin’s price quickly fell back to ,000. Ten minutes after his purchase, the whale immediately sold all of his BTC back into dollars, but only received 3,970 USDC in return. That amounts to a ,000 loss in just ten minutes. Data from Glassnode shows that price volatility around the

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On-chain data shows that a wealthy crypto investor lost $49,000 on a bad trade following false reports about BlackRock receiving approval on its Bitcoin ETF application.

  • As noted by analysts from Lookonchain on Monday, an anonymous whale traded $613,201 in USDC for 20.5 Wrapped Bitcoin (WBTC) using 1Inch shortly after the initial report dropped.
  • At first, Bitcoin’s price had cracked above $29,000 in light of the news. However, after sources at Blackrock confirmed the news was fake, Bitcoin’s price quickly fell back to $28,000.
  • Ten minutes after his purchase, the whale immediately sold all of his BTC back into dollars, but only received $563,970 USDC in return. That amounts to a $49,000 loss in just ten minutes.
  • Data from Glassnode shows that price volatility around the event caused hundreds of millions of dollars in Bitcoin futures open interest on BTC to be flushed within an hour.
  • According to Coinglass, nearly 40,000 crypto traders have been liquidated within the past 24 hours.
  • BlackRock’s approval would have marked the first spot Bitcoin ETF to reach US investors, which many suspect will welcome billions of dollars into BTC from institutions.
  • In October, a former Blackrock executive predicted that a spot Bitcoin ETF would be approved by April 2024. Bloomberg ETF analysts also place a 90% likelihood of such an ETF being approved by early next year.

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