In a shocking turn of events, over $218 million in cryptocurrency trades were liquidated in the past 24 hours. This was triggered by a false government announcement stating that Bitcoin spot ETFs had been approved in the U.S. Coinglass reported that over $56 million in Bitcoin trades were liquidated in just the past hour. The fallout affected over 72,000 traders, with the largest single liquidation occurring on a BTC/USD trade on ByBit for $6 million.
The Securities and Exchange Commission (SEC)’s official page had claimed on Tuesday that approval had been granted for Bitcoin ETFs to go live on all national securities exchanges. However, SEC chairman Gary Gensler later clarified that the SEC’s account had been compromised and that ETFs were not approved.
The false news caused Bitcoin’s price to surge to $47,800 before immediately falling to $45,400 as the market processed the situation. Fox Business correspondent Charles Gasparino reported that the SEC would need to investigate itself for market manipulation via the fake tweet, based on input from lawyers.
Bloomberg ETF analyst Eric Balchunas proposed a different theory. He suggested that the tweet was real but had been mistakenly scheduled a day earlier than the SEC had intended to release their approval announcement. Despite the confusion, Balchunas maintains that ETFs will likely go live on Thursday.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Charles Gasparino, Eric Balchunas, Gary Gensler |
| Companies | Fox Business, The Securities and Exchange Commission, ByBit, Bloomberg, Coinglass |
| Currencies | US Dollar, Bitcoin |
| Securities | None |
