SEC Twitter Account Hacked, Fake Bitcoin ETF Tweet Causes Market Reaction
The official Twitter account of the U.S. Securities and Exchange Commission (SEC) was hacked on Tuesday evening, leading to a false tweet claiming that regulators had approved a Bitcoin exchange-traded fund (ETF). Although the tweet was quickly deleted and the SEC clarified that the account had been compromised, the incident offered insights into how cryptocurrencies might respond to future Bitcoin ETF approvals.
Ethereum Price Surges on Fake News
One notable reaction to the fake tweet was the surge in Ethereum’s price. Ethereum volume spiked by 73% to nearly $22 billion, with prices reaching a peak of 9.3% intraday. This suggests that an actual Bitcoin ETF approval could also act as a catalyst for Ethereum, as traders sell the news and rotate into ETH in anticipation of an Ethereum ETF approval.
Potential Impact of Real News
If cryptocurrency prices can spike based on a fake tweet, it raises questions about the potential impact of real news. The long-awaited SEC decision on a Bitcoin ETF is expected soon, and if approved, it could make Bitcoin more accessible to mainstream investors. This would likely boost demand for Bitcoin and have spillover effects for other major coins like Ethereum.
Prague Upgrade Generates Optimism
In addition to the price movements caused by the fake tweet, Ethereum is also preparing for the Dencun upgrade, which is expected to enhance its functionality and capabilities. This upgrade has generated excitement within the cryptocurrency community and could have a bullish effect on Ethereum’s price. Investors and analysts anticipate an ETH price surge as a result of these modifications.
Hot Take: Positive Outlook for Ethereum Price
The recent fake tweet about a Bitcoin ETF approval gave a sneak peek into the potential market reaction. With the anticipation of an Ethereum ETF approval, there is significant upside for the cryptocurrency after Bitcoin’s ETF approval. As the industry awaits the SEC’s decision, a positive outcome could unleash the next leg up for the nascent asset class.
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