Bitcoin’s 10% Swing Halted by Fake ETF News, Price Steady Above $28K

Key Takeaways

• Fake spot Bitcoin ETF news sent investors into a flurry as it pushed Bitcoin to month-long highs.
• Tesla and Netflix to share Q3 earnings after New York’s bell.

Rumor Has It

Bitcoin has settled back into the $28,000 level Wednesday morning, cooling off from its dramatic October high of nearly $30,000 on Monday, marking its most significant daily uptick since March. The historically profitable “Uptober” was in hot water before false spot Bitcoin ETF news hit the market. 

Digital media outlet Cointelegraph recently posted on X (formerly Twitter) that the US Securities and Exchange Commission had given the green light to investment firm BlackRock’s spot Bitcoin ETF. The news sent the cryptocurrency soaring, albeit prematurely, before Cointelegraph backpedaled, deleting the post. The media source issued an apology for the misinformation, stating that an “internal investigation is currently underway”. 

Journalist Eleanor Terrett reached out to associates at BlackRock, sharing a post on X stating that the “iShares Spot Bitcoin ETF is still under review by the SEC”.

BlackRock isn’t the only investment firm to submit an application to launch BTC ETFs. Other investment firms, such as Fidelity and Invesco, tried to get in on the action before but were rejected by the SEC due to concerns surrounding crypto’s volatility. 

Crypto asset manager Grayscale Investments recently won a court ruling to convert its Bitcoin trust into an ETF after the SEC initially denied their request. This ruling – along with BlackRock’s recent filing – is leading experts to believe that there will be at least one spot Bitcoin ETF available by early 2024.

Despite the drama, the crypto coin seems to have survived the fallout. Interestingly, Bitcoin is up 72% since the beginning of the year, outperforming large-cap indexes like the S&P 500, which has only gained 13.9% in the year to date, and the Dow Jones Industrial Average, which has only risen by 2.57% for the same time span.

Earnings Season

Speaking of the major indexes, the S&P 500 erased some of Monday’s gains with a minor loss of 0.01% by the closing bell on Tuesday. The Nasdaq faced the most impact with a 0.26% decline, while the Dow Jones Industrial Average emerged with a fresh 0.03% gain, on top of Monday’s 0.93% boost.

Later on in the day, we can anticipate third-quarter earnings reports from streaming giant Netflix and electric automaker Tesla, after market close. Investors should tune in for insights into the two companies’ resilience in the face of potentially tighter discretionary spending due to the return of student loans. 

We’ll get more of an insight into the economic outlook on Thursday when Federal Reserve Chair Jerome Powell will speak in New York. 

In a nutshell, there will always be rumors that contribute to crypto’s worth. Since its value is primarily driven by demand, any news can increase its volatility. To navigate the ever-changing financial landscape, research news on your own to find reputable sources and do your due diligence before making any pivotal decisions. Make use of the best crypto analysis tools out there to form your winning strategy.