Bitcoin briefly rallied 7% to $30,000 before retracing on an erroneous news headline of the SEC approving BlackRock's spot BTC ETF application. Price gains could be even larger when a real approval arrives, said one team of analysts, while another outfit suggested approval has been priced in. If prices do jump on a spot ETF green light, it could be a "sell the news" event, suggested Enigma Securities
Bitcoin's (BTC) violent but short-lived Monday rally on an erroneous news post about a spot BTC exchange-traded fund (ETF) approval offered a dress rehearsal for how the market would react when the real thing happens, analysts say. "Violent price action on the fake ETF news serves as a timely reminder of what will likely happen upon a decisive verdict on the spot ETF applications," K33 Research analysts noted.
Their report pointed out that BTC shot up 7% to $30,000 from just under $28,000 in eight minutes after the false alarm. The team also noted that bitcoin gained 14% in a week following BlackRock's application for a spot ETF in mid-June.
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