The crypto market experienced a whirlwind of events on Tuesday when a tweet from the United States Securities and Exchange Commission’s (SEC) official X (formerly Twitter) account claimed that all Spot Bitcoin ETF applications had been approved. This news initially led to a surge in Bitcoin’s price, but the excitement was short-lived as the price plummeted soon after. The cause of this sudden turn of events was revealed to be a fake tweet, as the SEC’s social media account had been compromised, according to Gary Gensler, the Commission’s chairman.
This incident triggered a massive liquidation event, with over $220 million liquidated in the last 24 hours, as reported by CoinGlass. This event is considered the second-largest liquidation event of 2024. The data also revealed that over 70,000 traders were affected by this event, with both long and short traders experiencing losses due to the price fluctuations of Bitcoin and other crypto assets.
Long traders were the most affected group, with 60.47% of the liquidations, amounting to $133.5 million. Short liquidations accounted for $87.29 million. The largest single liquidation order was a $6 million trade on the ByBit exchange, contributing to the total liquidations of $36.66 million on the exchange. However, Binance led the market with $83.88 million, followed by OKX with $73.97 million.
The Spot Bitcoin ETF approval has been a topic of debate among experts. Crypto analyst Andrew Kang suggests that approval would lead to a scramble among applicants to secure a share of the expected $10 billion to $20 billion in fees, leading to aggressive marketing of their ETFs. However, economist Peter Schiff argues that a spot ETF would not be beneficial for the asset, as it would eliminate any good news to trigger a price rally, turning it into a ‘sell the news’ event.
Given the price decline that occurred even before the SEC dismissed the fake tweet, it could be inferred that the ETF is already priced in. However, this remains a topic of speculation and further observation.
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This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Gary Gensler, Peter Schiff, Andrew Kang |
| Companies | Binance, CoinGlass, OKX, ByBit, United States Securities and Exchange Commission |
| Currencies | Bitcoin |
| Securities | None |
