The price of Bitcoin saw dramatic fluctuations following a security breach on the official Twitter account of the US Securities and Exchange Commission (SEC). A fraudulent tweet was posted at 4:11PM EST on Tuesday, falsely announcing the approval of a spot Bitcoin exchange-traded fund (ETF). The misleading information led to a surge in Bitcoin’s price from approximately $46,600 to $47,680, marking a two-year price high for the leading cryptocurrency.
However, the SEC chair, Gary Gensler, quickly intervened, issuing a statement 15 minutes later that the agency’s account had been compromised and the tweet was unauthorized. He denied any approvals had been granted, which resulted in Bitcoin’s price plummeting to nearly $45,500. This incident underscores the significant influence of the SEC and the continued price sensitivity of Bitcoin.
Despite the volatility, the SEC is anticipated to approve spot Bitcoin ETFs this Wednesday, with the first Bitcoin ETF potentially starting trading as soon as Thursday, according to some analysts. This expectation, coupled with Tuesday’s fraudulent tweet and the rapid market reaction, highlights the power of regulators and the extreme volatility of the largely unregulated crypto markets.
Bitcoin’s price remains up 8% over the past two weeks and 166% over the past year, even after the recent price movements. The incident of the fraudulent tweet and its impact on the market has not gone unnoticed in Washington. Prominent political figures have voiced their concerns and called for a thorough investigation.
Senator Cynthia Lummis, a US Senator from Wyoming, expressed concerns about market manipulation resulting from such fraudulent announcements. Similarly, Senator Bill Hagerty from Tennessee stressed the need for accountability, drawing parallels with the standards expected of public companies. Additionally, Rep. Bill Huizenga, Chairman of the House Financial Services Oversight and Investigations Subcommittee, questioned the broader implications of the SEC’s actions.
This incident, where traders reacted instantly to buy Bitcoin at higher prices following the fraudulent tweet, showcases vulnerabilities where regulatory decisions and announcements meet new digital asset trading dynamics. Rumors and speculation related to Bitcoin ETF approvals have whipsawed crypto prices before, but this incident, coming from an official government Twitter account, has raised new concerns.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Bill Huizenga, Bill Hagerty, Cynthia Lummis, Charles Gasparino, Gary Gensler |
| Companies | CoinGecko, US Securities and Exchange Commission, FOX Business Network, House Financial Services Oversight and Investigations Subcommittee |
| Currencies | Bitcoin |
| Securities | None |
