Bitcoin Maintains Position Above $28K Amidst False ETF Reports: Market Recap

Amidst reports of higher-than-expected U.S. PPI and CPI data, the market has been experiencing a downward trend. Bitcoin is currently trading slightly above $28,500, reflecting a 5% increase. This surge was triggered by a false report suggesting that the Securities and Exchange Commission (SEC) had approved the first bitcoin spot ETF. This report initially led Bitcoin's price to approach $30,000, causing approximately $100 million in liquidations. However, BlackRock and other credible sources promptly debunked the claim. Subsequently, Cointelegraph, the crypto news site responsible for the initial report, issued an apology for disseminating inaccurate information, attributing the incident to an error by its social media team. They have also committed to reviewing their internal practices.

Over the past 12 hours, total bitcoin liquidations have amounted to $137.2 million, with long liquidations at $45.6 million and short liquidations at $91 million, according to data from CoinGlass.

David Lo, the Head of Financial Products at Bybit, noted that on-chain activity indicates that long-term investors are accumulating record levels of bitcoin holdings. Concurrently, Ethereum's gas usage has seen a notable decline, resulting in accelerated ether inflation. Bitcoin has strengthened its dominance in the market capitalization relative to other cryptocurrencies, including Ether.

In the stock market, there has been an upward trend, with the S&P 500 closing up 1%. In contrast, bond prices have been on a slight decline, as diplomatic efforts intensify to prevent the Israel-Hamas conflict from escalating into a broader regional issue.

Interest rates remain a focal point of concern for the market. Treasury Secretary Janet Yellen has indicated that high rates may persist in the U.S. In a speech at the Mortgage Bankers Association's annual convention, Philadelphia Federal Reserve President Patrick Harker emphasized that elevated interest rates have significantly impeded first-time home buyers' access to the housing market.

Read more: Crypto ETF Optimism Grows Amid Regulatory Dialogue