- Bitcoin experiences a sudden spike to $30,000 due to fake news about Blackrock’s ETF approval, only to drop to $28,100 minutes later.
- Crypto expert Gareth Soloway labels the incident as “pump and dump,” emphasizing the need for regulatory intervention.
In an unpredictable turn of events, the crypto community found itself grappling with a rollercoaster of emotions on Monday. The heart of the matter? A sudden and unexpected rise in Bitcoin’s price, reaching a staggering $30,000.
This was spurred by rumors – later debunked – about the SEC granting a nod to Blackrock’s iShares Bitcoin spot ETF. What commenced as enthusiasm, swiftly transitioned into a plummet, with Bitcoin falling to a low of $28,100 in mere moments after the news was refuted.
These rapid shifts weren’t just numerical. They culminated in a wave of liquidations across the cryptocurrency market. The knee-jerk reactions have stirred suspicions, with experts conjecturing that this might have been a well-orchestrated play at market manipulation, designed to favor a privileged few.
Delving into the Need for Oversight:
A voice that stood out in the echo chamber of speculations was that of Gareth Soloway, a recognized crypto analyst. In his Tuesday recording, he termed the incident as a classic case of
“pump and dump.”
His rationale? Such dramatic price oscillations don’t spontaneously arise. There’s often a puppeteer pulling strings from behind the scenes, deploying false information for self-benefit.
“This isn’t mere coincidence or a stroke of luck. There’s always an ulterior motive driving such anomalies.”
His apprehensions ran deeper, highlighting the potential erosion of trust in the crypto ecosystem, and the exigency of intervention from regulatory bodies.
“The crypto landscape is akin to a wild, unpredictable terrain. It necessitates an oversight body, like the SEC, to maintain order. It’s imperative to uncover who was making significant wagers on Bitcoin during this chaos.”
For Soloway, the incident underscores a broader issue: the susceptibility of the crypto market to rumors and misinformation. In his view, creating a robust regulatory framework is paramount to preserving market integrity.
Despite the turbulent waters, Soloway discerned a silver lining. Prior to the turmoil, Bitcoin’s chart had shown promising signs. Though not pinpointing a specific trajectory, he emphasized that the data indicated an impending surge.
In a bid to clarify its stance, CoinTelegraph, the initial propagator of the misleading news, retracted its post and extended an apology. Kristina Lucrezia, CoinTelegraph’s Editor-in-Chief, lamented the debacle, asserting,
“This mishap is a stark reminder of the responsibilities vested upon us, spotlighting what mustn’t transpire.”