Unknown hackers illegally took over the U.S. Securities and Exchange Commission’s (US SEC) X account in an amazing chain of events, issuing a fraudulent and misleading statement announcing the acceptance of spot Bitcoin ETFs. The US SEC later refuted the misleading announcement. The price of bitcoin (BTC) dropped by 3% as a result.
The False Announcement
Unknown hackers gained access to the X account, the U.S. SEC’s official communication channel, and distributed a fake notification claiming that spot Bitcoin ETFs were approved. Millions of people viewed the phony news that the Bitcoin ETF was approved, which caused the price of BTC to plummet by 3%. The market’s abrupt reaction to false information shocked investors and illustrated how brittle cryptocurrency values can be when there are strong expectations for regulatory developments.
Shortly after, U.S. SEC Chair Gary Gensler quickly disputed the statement, stating that no such approval had been given and the page had been hacked.
The fact that the BTC price dropped once it was revealed that the alleged U.S. SEC permission was fraudulent must have meant that a lot of eager cryptocurrency investors hoping to profit from the spot Bitcoin EFT approval lost money. Should the impacted cryptocurrency investors decide to take the U.S. SEC to court for neglecting to protect its X account from hackers? How much may this influence the response of the market in the event that the U.S. SEC finally authorizes a spot Bitcoin ETF? Will the market eventually become neutral, or will it remain bullish?
The US SEC’s Reaction and Possible Postponement
Eleanor Terrett of Fox Business stated that the U.S. SEC may take longer to decide whether to approve Bitcoin exchange-traded funds. Terrett emphasized that even in the absence of an official ETF committee vote, individual committee members are still able to ask for an in-depth analysis and vote on the issue. Despite contradictory reports, enthusiasts expect the U.S. SEC to rule on many spot Bitcoin ETF applications on January 10; more rulings on exchange files and Form S-1 are expected in the next few days.
The U.S. SEC’s upcoming judgment has split the cryptocurrency world. While some market players brace themselves for yet another delay in the ETF authorization process, others anticipate approval any moment now. This divergence of opinions emphasizes the uncertainties surrounding the cryptocurrency space as players wait for decisive regulation.
Market Performance of Bitcoin
As of this writing, BTC is trading at $45,977, indicating a 1.33% increase in value over the previous week. More intriguingly, yesterday saw a surge in Bitcoin as it reached $47,900 for the first time in over two years. Strong investor confidence was demonstrated by the steep 120% rise in daily trading volume.
Analysts predict that $50 billion to $100 billion will move into Bitcoin if a spot ETF is approved. This rise may cause Bitcoin to reach the fictitious $50,000 level since some were expecting significant inflows from institutional investors.
In the realm of spot Bitcoin ETFs, however, investors in cryptocurrencies and the general public need to be cautious of several kinds of market manipulation. Caution is just as important in cryptocurrency trading as awareness and quickness.