The Rollercoaster Ride: Bitcoin Price Swings After SEC Twitter Hack
The price of Bitcoin experienced significant volatility on Tuesday following a tweet from the United States Securities and Exchange Commission (SEC) announcing the approval of a spot Bitcoin ETF. However, it was later revealed that the SEC’s Twitter account had been compromised, and no Bitcoin ETFs had actually been approved.
Bitcoin’s Wild Ride
Within minutes of the false announcement, Bitcoin’s price surged from around $46,600 to $47,680, reaching a two-year high. However, the excitement quickly turned into frustration as the price plummeted to nearly $45,500 before recovering slightly to about $46,000. Currently, it has fallen below $45,500.
Delayed Approval Expected
Despite the false alarm, the SEC is still anticipated to approve spot Bitcoin exchange-traded funds (ETFs) this week. Bloomberg analyst Eric Balchunas predicts an announcement on Wednesday afternoon with trading to commence on Thursday.
Mixed Reactions and Ethereum’s Rise
The market reacted with both excitement and annoyance due to the misleading tweet. Despite the dip in Bitcoin’s price, it has still seen an 8% increase over the past 14 days and a remarkable 166% increase over the past year. Interestingly, Ethereum has performed well amidst the Bitcoin turmoil. It initially experienced a surge and subsequent drop following the false ETF news but has since climbed further and approached a 24-hour high at $2,337. It has recorded a more than 3% gain in the last hour.
Hot Take: The Impact of False News on Crypto Markets
The recent incident involving the SEC’s compromised Twitter account serves as a reminder of how easily misinformation can cause significant market fluctuations. The crypto market is highly sensitive to news and announcements, making it crucial for investors to exercise caution and verify information from reliable sources before making any trading decisions. While Bitcoin’s price experienced a rollercoaster ride, the incident highlighted the resilience of Ethereum, which managed to weather the storm and continue its upward trajectory.
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