An erroneous report falsely claiming approval of Blackrock’s Ishares spot bitcoin exchange-traded fund by the U.S. Securities and Exchange Commission (SEC) caused the liquidation of short positions worth $78.92 million. This represented a significant 57% of the total $136.29 million in short positions liquidated within the past 24 hours.
Deceptive SEC Ruling Report Disturbs Bitcoin Market, Eliminating Millions in Short Bets
On a recent Monday, the cryptocurrency-oriented media outlet Cointelegraph propagated inaccurate news via a social media platform and its Telegram channel, causing a surge in bitcoin's value against the U.S. dollar by over 10%.
The cryptocurrency momentarily peaked at a value of $29,900 per coin, then plummeted to $28,100 per unit once the falseness of the news was revealed. Despite Cointelegraph's apology, the timing was insufficient to prevent the market disturbance, leading to the liquidation of short positions worth $78.92 million.
Data from Coinglass indicates that in the previous four hours, BTC short positions constituted $71.36 million of the liquidated shorts. Additionally, approximately $2.49 million of Solana (SOL) short positions were liquidated.
The astonishing $78.92 million constituted 57% of the total short positions liquidated in the preceding 24 hours. Simultaneously, over the same four-hour period, Ethereum (ETH) long positions exceeding $18 million were also liquidated.
Following the revelation of the misleading report, there was a sharp decrease in short positions on Bitfinex. Simultaneously, there was an initial surge in long positions on Bitfinex prior to the confirmation of the false report, followed by a decline.
The false news incident led to a significant number of traders being liquidated, potentially impacting speculation surrounding the actual decision. The most significant liquidations were observed in BTC, ETH, XRP, BNB, and SOL.
What are your views on the short traders who faced liquidation due to the false news? Share your thoughts and viewpoints on this topic in the comments section below.
Frequently Asked Questions
Which precious metals are best to invest in retirement?
It is gold and silver that are the best precious metal investment. Both are easy to sell and can be bought easily. You should add them to your portfolio if you are looking to diversify.
Gold: Gold is one of man's oldest forms of currency. It is also extremely safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Investors have always loved silver. It is an excellent choice for investors who wish to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium is another precious metal that is becoming increasingly popular. It's durable and resists corrosion, just like gold and silver. It's however much more costly than any of its counterparts.
Rhodium: Rhodium can be used in catalytic convertors. It is also used to make jewelry. It is also quite affordable compared with other types of precious metals.
Palladium (or Palladium): Palladium can be compared to platinum, but is much more common. It's also less expensive. Investors looking to add precious and rare metals to their portfolios love it for these reasons.
What's the advantage of a Gold IRA?
There are many advantages to a gold IRA. You can diversify your portfolio with this investment vehicle. You decide how much money is put in each account and when it is withdrawn.
You also have the option to roll over funds from other retirement accounts into a gold IRA. If you are planning to retire early, this makes it easy to transition.
The best thing is that investing in gold IRAs doesn't require any special skills. They are readily available at most banks and brokerages. You do not need to worry about fees and penalties when you withdraw money.
There are also drawbacks. The volatility of gold has been a hallmark of its history. It's important to understand the reasons you're considering investing in gold. Is it for growth or safety? Are you looking for growth or insurance? Only after you have this information will you make an informed decision.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. You won't need to buy more than one ounce of gold to cover all your needs. Depending on the purpose of your gold, you might need more than one ounce.
You don't have to buy a lot of gold if your goal is to sell it. Even a single ounce can suffice. These funds won't allow you to purchase anything else.
Can the government seize your gold?
You own your gold and therefore the government cannot seize it. You worked hard to earn it. It belongs exclusively to you. However, there may be some exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. Your precious metals can also be lost if you owe tax to the IRS. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
cftc.gov
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Investing gold vs. stocks
It might seem risky to invest in gold as an investment vehicle these days. This is because most people believe that it is no longer economically profitable to invest gold. This belief stems from the fact that most people see gold prices being driven down by the global economy. They fear that investing in gold will result in a loss of money. However, investing in gold can still provide significant benefits. Below we'll look at some of them.
The oldest form of currency known to mankind is gold. It has been in use for thousands of year. It is a valuable store of value that has been used by many people throughout the world. Even today, countries such as South Africa continue to rely heavily on it as a form of payment for their citizens.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. You can always ask a local jeweler what the current market rate is if you don't have it.
It's worth noting, however, that while gold prices have fallen recently the cost of producing gold is on the rise. So, although gold prices have declined in recent years, the cost of producing it has not changed.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. If you plan to buy enough gold to cover your wedding rings then it is probably a good idea to wait before buying any more. This is not a wise decision if you're looking to invest in long-term assets. If you sell your gold for more than you paid, you can make a profit.
We hope our article has given you a better understanding of gold as an investment tool. We recommend you do your research before making any final decisions. Only then can you make informed decisions.
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By: Jamie Redman
Title: Disinformation Incident: Erroneous SEC Approval Report Results in $71M Bitcoin Short Position Liquidation
Sourced From: news.bitcoin.com/wipe-out-fake-sec-approval-report-erases-71m-in-bitcoin-short-positions/
Published Date: Mon, 16 Oct 2023 17:30:18 +0000
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