Following the emergence of news confirming the approval of a Bitcoin ETF on Monday, there was a sharp rise in the price of Bitcoin. This short-term price increase brought joy to the crypto community. The news of the price increase in Bitcoin triggered by reports of the SEC approving Blackrock’s iShares Bitcoin spot ETF to $30,000 was met with excitement.
However, Blackrock quickly denied the claims, and the atmosphere of joy quickly turned into disappointment. Bitcoin plummeted to $28,100 within minutes. Investors in the crypto market were caught off guard and faced liquidations. The situation was met with a strong reaction from market participants.
Analyst Gareth Soloway, well-known to cryptocurrency investors, referred to the situation as “pump the price and sell” in a video he shared on Tuesday. Soloway shared that such a serious event cannot occur without intentional dissemination of false information for personal or institutional interests, and added:
I’ll be honest with you; these kinds of things don’t just happen when no one has ill intentions.
Soloway also expressed his concerns about the situation. He shared that events like this could undermine the trust being built in cryptocurrencies. He then called for intervention by regulators and said:
In conclusion, I can say that yes, the crypto markets need the SEC or some regulatory institutions that follow the crazy house… There needs to be an investigation by the SEC to find out who is making big bets on Bitcoin.
According to Soloway, such rumors can cause significant price fluctuations due to false information or unsubstantiated news. According to the famous analyst, the integrity of the market depends on the existence of a regulatory framework.
Furthermore, despite the overall impact of the “pump and dump” event in the market, Soloway stated that the Bitcoin chart has a positive trend. Although he did not specify a target price, he shared with investors that the observed charts indicate potential price increases.
Finally, CoinTelegraph, the source that reported this false information, immediately retracted its post and published an apology letter after receiving backlash from the market. Shortly after the incident, Kristina Lucrezia, the Editor-in-Chief of CoinTelegraph, expressed regret during an event in Dubai and said:
It was a disaster and serves as an example of what should not happen.