Fake ETF Approval Tweet Causes Massive Bitcoin Movement and $90M Liquidation

By: Isha Das

Twitter Hoax Leads to Bitcoin Market Turmoil

A compromised Twitter account recently broadcast false news of a Bitcoin ETF approval, causing significant disturbance in the crypto market. Bitcoin's value initially soared to nearly $48,000, then dropped precipitously to $44,900, leading to massive liquidations of short and long positions.

The chaos did not end there; it was followed by a substantial shift in profitable coins held by short-term holders. These individuals moved an impressive $1.3 billion to exchanges, marking one of the highest profit transfer days in the past two years.

In total, Bitcoin transfers to exchanges in the wake of the false news reached a staggering $2B, a scale only seen three times prior. Tragically, these transfers led to significant losses, with $750 million sent at a loss, highlighting the severity of the market disruption triggered by the false ETF approval news.