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
Ethereum has lost its “ultra” sound money status, faces key rectangle resistance hurdle
Ethereum is up 0.5% on Thursday following a recent analysis showing that the top altcoin lost its "ultra" sound money narrative. Meanwhile, ETH ETFs recorded net inflows for the first time after nine days of consecutive outflows.
Solana bears dominate market as SunPump has potentially led to less demand for SOL
Solana is down 2.5% on Thursday following bearish signals across its funding rate and total fees captured. SOL's weak performance could also be linked to the declining traction seen in its meme coin generation platform Pump.fun.
AI tokens see narrow gains as Wall Street banks raise price targets on NVDA
AI tokens NEAR, ICP, RENDER and TAO briefly traded in the green on Thursday following Wall Street banks' positivity toward Nvidia's earnings report. While a correction followed, these tokens could rally if NVDA meets expectations.
XRP back above $0.57 even as Ripple traders take $8 million in profits
Ripple (XRP) traders have consistently taken profits on their holdings in the last two weeks, per Santiment data. Once again, traders have grabbed $8.36 million in profit so far on Thursday. Typically, profit-taking negatively influences the asset as it increases the selling pressure.
Bitcoin: Will BTC continue its ongoing decline?
Bitcoin (BTC) trades above $59,000 on Friday, but it has lost 7.5% this week so far after being rejected around the daily resistance of $65,000. The decline is supported by lower demand from the US spot Bitcoin ETFs, which registered a net outflow of $103.8 million, falling Bitcoin's Coinbase Premium Index, and a spike in Network Realized Profit/Loss. However, some investors seem to be taking the chance to buy BTC amid this price dip, as shown by the Exchange Netflow data.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.