Bitcoin Market Volatility Triggered by False Tweets, Says Greeks.live
Greeks.live, a popular crypto options trading platform, has reported that the Bitcoin market experienced significant volatility due to fake news originating from a compromised X (formerly Twitter) handle. The volatility resulted in an increase in RV (Realized Volatility), while IV (Implied Volatility) saw a slight decrease.
Leverage Unwinding and Impact on BTC ETF
The false tweets from the official SEC X handle declaring approval for all spot Bitcoin ETFs triggered considerable market volatility. Greeks.live highlighted that the ETF has been traded for more than a month, with many investors betting on it, causing short-term IV to reach a recent peak. As a response to the fake news, numerous investors reduced leverage and positions, selling off assets early.
When the Securities and Exchange Commission (SEC) tweet confirming approval was posted, Bitcoin’s price surged but quickly retreated. The price stabilized within a certain range after the revelation of the false news. Fineqia’s Research Analyst Matteo Greco confirmed that the market movement was a reaction to what was believed to be real news, resulting in a “sell-the-news event.”
SEC’s Internal Cybersecurity Under Scrutiny
The SEC’s own X account was compromised, leading to criticism and mockery directed at the federal agency. Initial investigations suggest that the account lacked two-factor authentication (2FA). The failure to adopt this precautionary measure has subjected the SEC to increased scrutiny. $66.66 million in longs and $30.61 million in shorts were liquidated following the breach.
Two US senators have urged the SEC to provide a report on the breach to Congress, expressing serious concerns about internal cybersecurity procedures.
Hot Take: Bitcoin Market Reacts to Fake News, Raises Questions about SEC’s Cybersecurity
The recent volatility in the Bitcoin market, triggered by fake news originating from a compromised X handle, highlights the impact of misinformation and raises questions about the SEC’s internal cybersecurity measures. The false tweets declaring approval for Bitcoin ETFs caused significant market fluctuations, leading investors to reduce leverage and positions.
While the SEC’s deadline for approving or rejecting BTC ETF filings remains on track, the breach of its own X account has drawn criticism and calls for transparency from senators. The incident emphasizes the importance of robust cybersecurity measures in the crypto space.
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