Market Wrap: Bitcoin Hovers Above $28K After ETF Reports Prove False

Meanwhile, the market continues to trend downwards amid higher-than-expected U.S. PPI, and CPI Data.

AccessTimeIconOct 16, 2023 at 11:03 p.m. UTC
Updated Oct 16, 2023 at 11:07 p.m. UTC
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Bitcoin is trading just above $28,500, up 5%, after a false report about the Securities and Exchange Commission (SEC) approving the first bitcoin spot ETF pushed up markets early Monday U.S. time.

Earlier Monday, Bitcoin's price surged toward $30,000 due to a post on X (formerly Twitter) by the crypto news site Cointelegraph of a spot bitcoin ETF approval, causing $100 million in liquidations. BlackRock and other sources quickly debunked the claim, and Cointelegraph later apologized for a “tweet that led to the dissemination of inaccurate information.”

In a statement published Monday evening, Cointelegraph said the issue came about because of an error by its social media team and promised to review its internal practices.

Total bitcoin liquidations in the last 12 hours hit $137.2 million, with long liquidations coming in at $45.6 million and short at $91 million, according to CoinGlass data.

In a note, David Lo, head of financial products at Bybit, wrote that on-chain activity shows bitcoin holdings by long-term investors are reaching record levels, while Ethereum's gas usage is dropping significantly, leading to faster ether inflation. Bitcoin has increased its dominance – its share of the overall market capitalization of cryptocurrencies – while notching gains relative to ether.

Stocks trended upward.The S&P 500 closed up 1% while bonds drifted lower as diplomatic efforts intensified to prevent the Israel-Hamas conflict from becoming a regional conflict.

Interest rates continue to be a concern for the market, with Yellen stating that high rates might be “persistent” in the U.S.

Earlier Monday, Philadelphia Federal Reserve President Patrick Harker said during a speech at the Mortgage Bankers Association's annual convention that high-interest rates have significantly hindered first-time home buyers' access to the housing market.

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