In a shocking revelation, the official X account of the US Securities and Exchange Commission (SEC) was hacked, releasing a fake Spot Bitcoin ETF approval announcement.
The @SECGov twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
— Gary Gensler (@GaryGensler) January 9, 2024
Crypto executives call for SEC self-investigation
Reportedly, securities lawyers say the US SEC "will have to investigate itself for market manipulation after moving the price of BTC up and down following the hacked tweet that it had approved the first spot BTC ETF and then saying it was fake," with Charles Gasparino adding, "For the SEC not to approve tomorrow would be unprecedented; it has never rejected ETF applications that have gone as far as these."
Ripple CEO Brad Garlinghouse reiterated Gasparino's assertions about the SEC self-investigating.
Days like this remind me that 1/ the SEC should be investigating itself for multiple things 2/ crypto Twitter remains undefeated in memes.
— Brad Garlinghouse (@bgarlinghouse) January 9, 2024
Gemini co-founder Cameron Winklevoss supported, saying, "It would be great if the SEC would stop manipulating the Bitcoin market."
US Senator Bill Hagerty has also called for answers from the SEC, citing the need for accountability.
It remains to speculation, pending investigation, with ETF specialist Eric Balchunas saying, "The language sounds legit SEC-ish IMO vs a crypto knucklehead pulling a prank..."
It remains unclear how this affects the expected announcement, but an actual approval is expected on Wednesday with multiple speculators expecting a reaction. It may influence how the market will deliver, with traders and investors already exiting.
Cryptocurrency markets react
In the aftermath, over $210 million in total liquidations were recorded, comprising $135 million in long positions versus $67 million in shorts.
Total liquidations
Bitcoin price dipped 5% in the immediate aftermath, to record an intra-day low of $44,748. The slump saw $33 million BTC longs liquidated alongside $24 million shorts.
BTC/USDT 1-hour chart
At the time of writing, Bitcoin price was trading at $45,880.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.