SEC Hack Triggers $220 Million In Liquidations
In the wake of the recent SEC hack, many crypto traders suffered significant losses. According to data from CoinGlass, over $220 million has been liquidated in the past 24 hours, making it the second-largest liquidation event of 2024.
The liquidation event affected over 70,000 traders, both long and short. However, long traders were hit the hardest, accounting for 60.47% of the total liquidations with $133.5 million. Short liquidations amounted to $87.29 million.
The largest single liquidation order occurred on the ByBit exchange, where a trade worth $6 million was liquidated across the BTCUSD trading pair. Binance and OKX had higher total liquidations with $83.88 million and $73.97 million respectively.
Spot Bitcoin ETF Approval Already Priced In
There has been speculation about the impact of a Spot Bitcoin ETF approval on the market. Crypto analyst Andrew Kang believes that approval would lead to a scramble among applicants to secure a share of the expected $10 billion to $20 billion in fees.
On the other hand, economist Peter Schiff argues that a spot ETF would eliminate any positive news catalysts for price rallies, resulting in a ‘sell the news’ event.
However, considering Tuesday’s price decline even before the SEC dismissed the hacked tweet, it suggests that the ETF approval may already be priced into the market.
Hot Take: The Impact of SEC Hacks on Crypto Market
The recent SEC hack and fake tweet caused significant turmoil in the crypto market. With over $220 million in liquidations and thousands of traders affected, it highlights the vulnerability of the market to such incidents. The hack also raises concerns about the security of regulatory bodies and their ability to protect investors. While the impact on spot Bitcoin ETF approval remains uncertain, the market’s reaction suggests that expectations may have already been priced in. As the crypto market continues to evolve, it is crucial for regulators and traders to remain vigilant against potential hacks and scams.
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