Bitcoin Price Breaks Through $28,000 As Traders Digest Fake ETF Approval

Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Charles Bovaird
Author Categories
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
BtcUSD price chart

The bitcoin price rallied today, breaking through the $28,000 level as the cryptocurrency experienced notable gains, but fake news helped drive the pump. 

The world’s most prominent digital currency climbed to an intraday high of nearly $28,600 around 6 p.m. EST yesterday. 

Following this upward movement, bitcoin pulled back, trading below $28,300 at the time of this report. 

When explaining these latest price movements, several analysts emphasized the key role played by a fake news report, in which Cointelegraph’s Twitter account stated that the U.S. Securities and Exchange Commission (SEC) had approved an application for a spot bitcoin exchange-traded fund (ETF) submitted by global asset manager BlackRock. 

However, the market observers also highlighted other factors, as well as their impact on bitcoin’s recent price movements. 

“Bitcoin was up roughly 4% on the day before the fake news was reported by Cointelegraph,” said Scott Melker, a crypto investor and analyst who is the host of The Wolf Of All Streets Podcast

For information on how to buy bitcoin, read our BTC guide.

Short squeeze magnifies the bitcoin price upside move

“It is clear that the irresponsible fake news report was responsible for the move up and subsequent retrace, but not necessarily for the prior move,” he stated. 

“That was likely a result of insiders who knew that the move was coming, unfortunately. Or it was a result of a short squeeze,” Melker clarified. 

Tim Enneking, managing director of Digital Capital Management, also weighed in on the situation. 

“While the report you refer to certainly drove the initial move, the timing coincided with the expiration of the SEC’s deadline to appeal the Grayscale decision of earlier this year (and that timing may have been deliberate),” he stated. 

“Then the short squeeze took over and drove the classic spike  and, in the usual way for short squeezes, almost immediately fell back.” 

Bloomberg analyst citing a 90% chance of spot bitcoin ETF approval is genuinely bullish

Armando Aguilar, an independent cryptocurrency analyst, also commented on these latest developments, emphasizing that several variables helped drive bitcoin prices higher. 

He highlighted a prediction made by James Seyffart, an ETF research analyst for Bloomberg Intelligence, who wrote in a note that “We believe there’s a 90% chance of approval by Ark’s Jan.10 deadline,” referring to the deadline provided for a spot ETF application submitted by investment manager ARK Invest

Aguilar claimed that the high likelihood that an application for a spot bitcoin ETF will receive approval, “coupled with new institutional products and investments has made BTC slowly climb in price.” 

Going forward, the cryptocurrency could benefit significantly if the SEC approves an application for a spot bitcoin ETF, according to Andrew Rossow, attorney and founder of AR Media Consulting

“We’ve seen over the past few years the difficulty in getting the “greenlight” from the SEC, so a report indicating that it has approved a new spot bitcoin application is likely to have a significant effect upon the overall crypto market and whether we are one step closer to mainstream adoption,” Rossow stated. 

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

More Articles

Altcoin News
KRX Chairman Warns South Korea Risks Falling Behind Without Crypto ETFs
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-10 10:08:25
Ethereum News
Ethereum Short Positions Hit Record High as Hedge Funds Bet Against ETH
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-10 09:15:30
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors