• Bitcoin prices crashed on Friday, with the primary cryptocurrency struggling to break back above the $26,500 level.
• CryptoQuant attributed this fall to a coordinated FUD campaign against the primary cryptocurrency, which triggered a wave of liquidations this week.
• The analyst specifically called out a Twitter account called Whale Chart that published fake news without sources about US government selling its Bitcoin.
Bitcoin Prices Crash
Bitcoin crashed on Friday down to $26,166 and continues struggling to break back above the $26,500 level. What gives?
Fake News Campaign Against Bitcoin
Crypto market analytics platform CryptoQuant said the latest fall may be due to a coordinated FUD (Fear, Uncertainty, and Doubt) campaign against the primary cryptocurrency, which triggered a wave of liquidations this week.
US Government Not Selling Its BTC
In a post on Friday, CryptoQuant analyst IT Tech called attention to a wave of online “coordinated fake news” related to the US government selling its Bitcoin earlier this week. He specifically called out a Twitter account called Whale Chart that published “fake news without sources” concerning US government selling its Bitcoin.
Effects of Fake News
Many accounts retweeted this news without any fact-checking, leading to one of the largest long liquidations in 2023 with over $36M being liquidated within one hour.
The US government is currently one of the world’s largest holders of Bitcoin and it is important for people not to believe fake news stories circulating online as they can cause large scale effects like we have seen here with the crash in bitcoin prices.