• Bitcoin’s price surged due to fake SEC ETF approval rumors but dropped after Blackrock denied it.

• Experts call for regulatory action to prevent market manipulation in the cryptocurrency space.

In a surprising turn of events, Bitcoin’s price experienced a sudden and substantial surge, on a Monday, reaching a peak of $30,000. Rumors circulating within the crypto community triggered this dramatic increase, with claims that the U.S. Securities and Exchange Commission (SEC) had approved Blackrock’s iShares Bitcoin spot ETF.

However, this momentary euphoria quickly transformed into disappointment as Blackrock swiftly denied such approval. In a matter of minutes, Bitcoin plummeted back to $28,100. This sudden price swing shocked the cryptocurrency market and left many investors bewildered.

Market Manipulation Suspicions Surface

The extraordinary and rapid price fluctuations in Bitcoin’s value led to immediate speculation that market manipulation was at play. Experts and analysts alike expressed their doubts, with some going so far as to label the incident as a classic “pump and dump” scheme.

Gareth Soloway, a prominent crypto analyst, was quick to voice his concerns. He asserted that such a drastic price movement couldn’t have occurred without deliberate efforts to spread false information for personal gain. He emphasized,

“I’m just being honest with you; this stuff doesn’t just materialize out of thin air with no one having some ulterior motive.”

Soloway’s apprehension extends beyond the immediate incident. He highlighted the potential consequences of events like these, which could erode trust in the crypto space. Consequently, he called for the intervention of a regulatory body, such as the SEC, to investigate and uncover those responsible for placing significant bets on Bitcoin.

The Case for Regulatory Action

Gareth Soloway’s call for regulatory action is rooted in the belief that when rumors, misinformation, or news can trigger substantial price fluctuations, it underscores the need for a robust regulatory framework to safeguard market integrity. While the crypto market has grown rapidly in recent years, it remains relatively unregulated compared to traditional financial markets.

Soloway’s perspective resonates with those who advocate for greater oversight and transparency within the cryptocurrency ecosystem. The absence of clear regulations leaves room for fraudulent activities and market manipulation, jeopardizing the interests of investors and the industry’s credibility.

Despite the controversy surrounding the “pump and dump” incident, Gareth Soloway noted that the Bitcoin chart had displayed a positive bias in the days leading up to the events. While he refrained from providing a specific price target, he pointed out that the chart had offered signals suggesting the potential for a surge in Bitcoin’s price.

CoinTelegraph Apology

CoinTelegraph, the source responsible for initially reporting the false information that triggered the market response, moved quickly to rectify its mistake. The news outlet removed the post and issued a public apology. Kristina Lucrezia, the Editor-in-Chief of CoinTelegraph, expressed deep regret during a public event in Dubai, stating, “This was a disaster, and it serves as an example of what must not occur.”

We apologize for a tweet that led to the dissemination of inaccurate information regarding the Blackrock Bitcoin ETF.

An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is…

— Cointelegraph (@Cointelegraph) October 16, 2023

Bitcoin’s Price Analysis

Experts assess the current situation by analyzing Bitcoin’s price from a technical perspective. Within a 50-day timeframe, Bitcoin had already established three higher highs, and the most recent high was still forming. The false ETF approval rumor pushed Bitcoin to retest the psychologically significant $30,000 level, but it currently hovers around the $28,369 support level.

 This support level sits at the midpoint of a range between $24,888 and $31,850, formed between July 13 and September 11. Supporting this bearish outlook is the presence of a bearish divergence between Bitcoin’s price and the Relative Strength Index (RSI) in the last two swing points.