Misinformation is not new in the crypto market. But, when it happens, it wipes out a large amount of money.
A false report claiming BlackRock’s approval of a Bitcoin ETF, sent shockwaves through the market, resulting in a loss of over $65 million.
Bitcoin’s price soared from a stable $27,900 to nearly $30,000, all driven by the exciting, albeit misleading, reports.
The aftermath was brutal. Bitcoin’s value dropped to around $28,000. Traders who had ridden the wave of optimism found themselves facing the reality of liquidation.
Data from Coinglass revealed that this short crypto rally’s reversal led to a total liquidation of $71.36 million.
Furthermore, the financial fallout from the false BlackRock news amounted to the loss of around $114.7 million.
Lookonchain’s data shed light on the buying and selling during this period. One example involved a whale who invested in 20.5 WBTC, parting with 613,201 USDC.
Yet, within ten minutes, this venture was sold at a loss of $49k. Such instances shows the gravity of decisions and the risks of succumbing to the Fear of Missing Out (FOMO).
In a space where fortunes hang in the balance due to a tweet or rumors, traders must proceed cautiously.
Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry.
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