In an unbelievable sequence of events, unknown hackers gained illegal control of the U.S. Securities and Exchange Commission’s (U.S SEC) X account, releasing a false and deceptive announcement of spot Bitcoin ETFs approval. The false announcement was later debunked by the U.S SEC. This led to a 3% drop in bitcoin (BTC) price.
The Deceptive Announcement
Unknown hackers infiltrated the U.S SEC’s official communication channel, the X account, disseminating a false notice declaring the approval of spot Bitcoin ETFs.
The fake news of Bitcoin ETF approval which led to a 3% drop in BTC price gained millions of views. Investors received a sudden jolt when the market reacted to deceptive information, demonstrating how fragile crypto prices can be in conditions with high expectations of regulatory developments.
Moments later, U.S SEC Chair Gary Gensler promptly refuted the announcement, revealing that the page had been compromised and emphasizing that no such approval had been granted.
Obviously, many expectant crypto investors looking to take advantage of the spot Bitcoin EFT approval must have lost money after BTC price dipped following the discovery that the purported U.S. SEC approval was fake. Will affected crypto investors be looking to sue the U.S. SEC for failing to secure its X account against hacking? How much impact could this affect subsequent market reaction if eventually the U.S. SEC approves spot Bitcoin ETF? Will the market still be bullish or gradually become neutral?
This incident echoes a worrying trend of hackers misleading crypto investors. Last December, a fabricated XRP ETF registration emerged, falsely implicating BlackRock. Though dispelled soon enough, the misinformation caused the XRP price to rise 12% for a while, showing that the market can be swayed by lies.
Read also: What is a cryptocurrency ETF?
U.S SEC’s Response and Potential Delay
Fox Business journalist Eleanor Terrett reported a possible delay in the U.S SEC’s decision on spot Bitcoin ETFs. Terrett highlighted that individual committee members retain the authority to request a comprehensive review and vote on the matter, even in the absence of a formal ETF committee vote. Despite conflicting reports, hopefuls anticipate the U.S SEC ruling on multiple spot Bitcoin ETF applications on January 10, with additional decisions on exchanges’ filings and Form S-1 in the coming days.
The crypto community finds itself divided on the U.S SEC’s impending decision. Some market participants expect an imminent approval, while others prepare themselves for another delay in the ETF authorization process. This difference in views highlights the uncertainty looming over the crypto sphere since stakeholders wait for a decisive regulation.
Read also: Bitcoin Spot ETF vs. Bitcoin Futures ETF
Bitcoin’s Market Performance
At the time of writing, BTC is trading at $45,977 which implies a rise of 1.33% in its value over the past week. More interestingly, BTC leaped yesterday, hitting $47,900 for the first time in almost two years. It was supported by a sharp 120% increase in daily trading volume, indicating strong investor confidence.
Analysts believe that approval of a spot ETF would likely cause $50 billion to $100 billion to flow into BTC. This increase could take BTC to the supposed $50,000 scenario as a result of those anticipating big inflows from institutional investors.
However it goes, crypto investors and the members of the general public must be wary of various forms of market manipulation in the world of spot Bitcoin ETFs. As much as alertness and speed are vital in crypto trading, caution is vital.
Credit: Solomon Victor is a Technical Analyst who is also knowledgeable about various aspects of blockchain and cryptocurrency.