Bitcoin Spot ETF is not yet approved. Markets thought otherwise

5 min readOct 21, 2023

This is crypto at its best — volatile, exciting, and filled with… manipulation. Bitcoin has risen 8% this week and is now trading above $29,000 — all it needed was a false news about the US SEC approving a BTC Spot ETF.

We are in UPtober — where Bitcoin has to move up while key altcoins wait and watch. BTC dominance is above 51% and ETH/BTC pair is below 0.055 — last seen in July 2022.

Today, we are decoding the impact of false news on the crypto markets and what you can do to avoid falling prey to them.

This Monday, the market rallied within minutes after a false tweet from the crypto news outlet Cointelegraph. Bitcoin abruptly rallied from $27,700 to $30,000 within an hour.

False tweet posted by Cointelegraph

Shortly after, the headline was disputed by Fox Business journalist Eleanor Terrett, providing a statement from Blackrock confirming that their Bitcoin ETF application is still under review.

Source: X (Twitter)

Following this, the price fell back to $28,500. This event triggered over $100 million in liquidations of futures positions in the 45 minutes following, meaning traders were forced to close positions on both the long and short side.

Source: Fxstreet

While this debacle raises multiple questions on reporting standards and market manipulation, funny memes started circulating over socials.

Source: X (Twitter)

We have put together a list to help you with — How to identify fake news?

  • Check the source: Make sure the article originates are can be corroborated to larger news outlets such as Wall Street Journal, Bloomberg, Reuters, CNN, etc.
    Cross-check with multiple sources: When some news pivotal such as Bitcoin Spot ETF approvals makes the round, make sure it is carried by multiple outlets before making any move.
    Check the web domain: Many fake news URLs look odd or end with “” or “.lo” (e.g., to mimic legitimate news sites. Double check if the news appears in legitimate websites.
    Identify central message: Fake news articles often push one viewpoint, have an strong tone, or make outrageous claims.
    Wait it out: Although time is of essence to act when bigger news breaks out, it pays to wait out for few hours before acting on it.
Source: X (Twitter)

Market manipulation based on fake news is not something new in the market. The crypto community has faced their own share of false news rallies over the years.

Litecoin in 2021

In September 2021, Walmart was the subject of a fake news release. Global Newswire reported that the nation’s largest retailer would soon begin accepting payment in Litecoin, a digital currency. Even the Twitter account for the Litecoin Foundation, which promotes the use of the currency, touted the release in a post. The value of Litecoin jumped more than 30% before Walmart put out a statement saying the news was false.

Later, GlobeNewswire said that a fraudulent user account was used to issue the release. In a statement, the Litecoin Foundation said a social media team member “was a little too eager and shared the story from the Litecoin Twitter account.”

Source: CNBC

Ripple in 2021

A fake press release was uploaded to, claiming that the SEC’s lawsuit against Ripple (XRP) was dismissed. Many experts believed it to be real, as the article went on to include quotes from Mary Jo White, an attorney who previously served as the 31st chair of the SEC from 2013 to 2017. Following this news, XRP rallied 4% in 24 hours. Later Charles Gasparino, a Fox Business Network reporter, clarified on X (Twitter) that the press release was fake. What’s intriguing is that, even after the news was dismissed as fake, XRP gained 34% in a week.

Ethereum in 2017

The title of the post in 4Chan, a simple image-based bulletin board read: “Vitalik Buterin confirmed dead. Insiders unloading ETH.” This was quickly picked up by other channels and they began reporting that the celebrated developer’s body had been pulled from the wreckage lifeless.

Buterin, co-founder of Ethereum, then posted a tweet refuting the information in classic style, using the Ethereum Blockchain as proof he was still alive and kicking. This led to market value of Ethereum falling by around $4 billion.

Source: Cointelegraph

When you react to false news by buying or selling your portfolio, there are many issues you will face. One, getting cash ready to be deployed or transferring your assets to an exchange. Two, offloading your portfolio at the wrong time or, worse, buying into a position where it drops dramatically post the hour. So the main message we give you today is — wait it out as an investor. Take strategic bets on the future of crypto — it is still early days. One hour or two will not change crypto forever. Cost average into your positions and do not take bulk investment decisions based on market direction or sentiment.

While fake news-related incidents are not isolated to crypto markets, it plays a larger role in influencing the wider audience due to its volatile nature. We urge our readers to do your due diligence before acting on these narratives.

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Disclaimer: Crypto-asset or VDA investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.