Bitcoin Breaks Through $28,000 As Traders Digest Fake ETF Approval
BTC/USD Chart / Source: CoinDesk
Bitcoin prices rallied recently, breaking through the $28,000 as the cryptocurrency experienced some notable gains.
The world's most prominent digital currency climbed to an intraday high of nearly $28,600 around 6 p.m. EST yesterday, according to CoinDesk data.
Following this upward movement, bitcoin pulled back, trading below $28,300 at the time of this report, additional CoinDesk figures reveal.
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 an 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.
"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
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