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The Bitcoin Price witnessed a steep drop yesterday because of FUD – Fear, Uncertainty, and Doubt – as a result of news circling around the crypto space that the US government has moved some of its BTC funds. However, it has been proven to be a mistake, and the original tweet has been deleted.
Fake FUD Causes Massive Drops in Bitcoin Price
The Bitcoin price was trading around the $28k mark last night at around 10:35 PM when the Twitter user Beetle came out with a tweet stating that the US government’s Bitcoin wallets are on the move.
He posted the transaction addresses to accompany his tweets to add legitimacy to his views. The tweet quickly spread across the crypto space like wildfire leading to massive sell-offs. This pushed the BTC price close to $26k before bouncing.
The mistake in the sweet was pointed out by two Twitter users, ZachXBT and Zaheer. It was.
It was Zaheer (Official Twitter handle – @SplitCapital) that the address had been mislabeled. Other users like Arkham also pointed out that they couldn’t see anything from their end.
A short story: pic.twitter.com/a5RdUZit0u
— Daan Crypto Trades (@DaanCrypto) May 10, 2023
Daan Crypto Trades was the one to collect the tweets and divulge this whole story through a selection of screenshots. He also added in the thread tha it has become too easy to manipulate the market due to the bearish conditions we are living in right now.
Mixed Signals Are Strong with Bitcoin At the Movement
Daan Crypto Trades have also pointed out that the current signals are quite mixed, which may lead to another major retrace for Bitcoin. There are fears that Bitcoin might hit September 2022-lows of last year, if the trend continues to dip.
And all of that has happened due to the presence of fake signals in the market.
$BTC Range low sept on fears about Us Gov wallet movements.
We're already seeing some mixed signals where this could have been another fake signal.
If that's the case I am expecting this dump to fully retrace over the next 24-48 hours. https://t.co/fCODOVSVYj pic.twitter.com/ty5gwd478P
— Daan Crypto Trades (@DaanCrypto) May 10, 2023
Bitcoin Hourly Charts Show Drops
The Bitcoin price dropped by 3.41% within a 2-hour time frame thanks to the mislabeled wallet address. Although the bulls were quick to act and pushed the BTC price back by up 4.5%, the crypto asset has now taken a corrective path.
In the last seven hours, the token has dropped by 1.38%. Although there have been some green candles, they are not long enough to overtake the red ones.
The good news is that the RSI (Relative Strength Index) is right in the middle at 44.05, which means that the token is closer to being undervalued than overvalued. A further drop to $27.3k can cascade into a bounce, pushing the Bitcoin price closer to $28k.
Bitcoin Price Prediction – All Eyes Now on CPI Report
The recent FUD created due to fake news has proven detrimental to Bitcoin’s growth. So now, all eyes are on the upcoming CPI report. The US core inflation report has historically influenced the crypto market.
A higher inflation rate equates to a stronger US dollar, which decreases the overall price of Bitcoin. Lower inflation, however, would mean a decrease in the price of USD, increasing the Bitcoin price.
Volatile Markets Make New Cryptocurrencies a Good Investment
The recent news has shown us the importance of only listening to crypto experts when trading. Beetle, the Twitter user responsible for spreading the mistaken news, had a little over 3k followers. However, his tweet still managed to put a dent in Bitcoin’s price. Similar tweets can prove more detrimental. So, be careful.
But the market is uncertain, which means the volatility remains. That makes new cryptocurrencies still available on presale better investment options. These new crypto assets are innovative and present early moving opportunities to new traders. Check them out here.
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