Bitcoin's price took a rollercoaster ride following rumors that the U.S. Securities and Exchange Commission (SEC) had greenlighted BlackRock's crypto investment product. The news fueled a dramatic price hike, only to see gains dissipate amid conflicting reports.

Temporary Price Surge, Now Stable at $28,211

Coin Telegraph, a leading crypto news outlet, initially announced that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock's application for a spot Bitcoin exchange-traded fund (ETF). However, the story was later retracted, according to Reuters.

Bitcoin's notorious volatility was on full display as it rose by 10%, reaching a high of $29,900 for the first time since August. However, it eventually settled at a 3.82% increase and a trading value of $28,211.

Bitcoin's value plummeted after a Fox Business reporter stated on the social media platform X that BlackRock had denied the report of SEC approval.

BlackRock subsequently confirmed its ongoing SEC review, specifically addressing the iShares Bitcoin ETP application. Sources connected to the SEC also verified that the application remains pending.

In a post on X, CoinTelegraph apologized for its earlier post, which said it "led to the dissemination of inaccurate information."

"An internal investigation is currently underway. We are committed to transparency and will share the findings of the investigation with the public once it is concluded within 3 hours," Coin Telegraph said. It also deleted its initial post.

Ben Laidler, a global markets strategist at eToro, observed, "Crypto markets have just shown how sensitive they are to any potential good news, with their premature rally today on rumors of the approval of a spot Bitcoin ETF."

Waiting for the SEC's Decision

Crypto markets eagerly await the SEC's verdict on multiple pending spot Bitcoin ETF applications, whose approval will stimulate investments within the sector. The SEC has previously rejected all spot Bitcoin ETF applications, citing concerns about protecting investors from market manipulation.

Lucas Kiely, Chief Investment Officer at Yield App, commented that although Monday's news of a spot Bitcoin ETF approval turned out to be a "false alarm," it served as a "good dress rehearsal" for the forthcoming SEC decision.

In a closely watched case within the cryptocurrency industry, Reuters reported that the SEC would not appeal a court ruling rejecting its decision to dismiss Grayscale Investments' spot Bitcoin ETF application. The District of Columbia Court of Appeals in Washington is expected to issue a mandate concerning the case's execution within the next week, likely instructing the SEC to reevaluate Grayscale's application.

As the SEC announcement approaches, headline risk has created substantial market volatility. Lucas Kiely emphasized, "The market will move markedly either way depending on the decision."

Photo: Orbital 101 Studio/Unsplash