Bitcoin's Value Plunges After SEC's Misleading Tweet
Bitcoin's value took a rollercoaster ride on Tuesday, thanks to a misleading tweet from an official Twitter account of the U.S. Securities and Exchange Commission (SEC). The tweet falsely announced the approval of all spot bitcoin exchange-traded funds (ETFs), causing a surge in bitcoin's price to nearly $48,000 per unit. However, this price increase was short-lived, as the market quickly realized the false nature of the announcement, and the price dropped back to around $45,000. This incident raised concerns among investors, with some likening it to a pump-and-dump scheme. Senator Bill Hagerty of Tennessee demanded answers from the SEC, highlighting the potential market manipulation.
Hagerty expressed his dissatisfaction, stating:
"Congress needs answers on what just happened. This is unacceptable, and the SEC should be held accountable, just like any public company would be."
Prior to this downturn, there was a noticeable upward movement in bitcoin's price, indicating strong buying interest. The price reached a ceiling near $47,897 before experiencing a significant plunge. As of 6:45 p.m. Eastern Time, bitcoin's value is attempting to stabilize above the $46,000 zone. The anticipation surrounding the approval of a spot bitcoin ETF has introduced considerable volatility to the market, with traders reacting to every update regarding its potential sanction. A similar situation occurred when Cointelegraph mistakenly reported the approval of Blackrock's spot bitcoin ETF.
The price fluctuations on January 9, 2024, reflect the complex dynamics of market responses to regulatory developments, accurate or misleading, expectations of key events like the spot BTC ETF approval, trends in institutional investment, and the overall market sentiment. Despite these ups and downs, optimism remains high for bitcoin, with its market capitalization surpassing major entities such as Berkshire Hathaway in late 2023. Many believe that the approval of a spot bitcoin ETF could have a significant impact on the market, attracting increased institutional involvement and enhancing liquidity.
Even before this potential approval, bitcoin has already experienced substantial price growth, surging over 160% within a year. The industry has been preparing for this event, and its occurrence may trigger various reactions, especially after two previous misleading announcements.
In the wake of the SEC's false tweet, coinglass.com reported that $60.58 million worth of BTC long positions were liquidated within the past four hours. Additionally, the SEC became a hot topic on the social media platform X, with over 172,000 posts about the subject trending at 7 p.m. Eastern Time.
What are your thoughts on the SEC's misleading tweet and its impact on the bitcoin market? Feel free to share your opinions in the comments section below.
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By: Jamie Redman
Title: False Spot ETF Approval Post Causes Chaos in Bitcoin Markets
Sourced From: news.bitcoin.com/turmoil-in-crypto-market-misleading-sec-post-triggers-significant-bitcoin-volatility/
Published Date: Wed, 10 Jan 2024 00:11:00 +0000
