Bitcoin ETF Approval Hoax Sparks Crypto Market Chaos: 900 Million Liquidations in 24 Hours

The U.S. Securities and Exchange Commission (SEC) encountered a significant cyber attack yesterday, leading to chaos in the highly anticipated decision regarding Bitcoin exchange-traded funds (ETFs). An SEC account on X was compromised, resulting in a false post claiming approval for the products. This post caused a brief surge in the price of the cryptocurrency before authorities initiated an investigation.
Impact on the Crypto Market
The fake tweet immediately caused the price of Bitcoin to skyrocket, reaching nearly $48,000 at the time. However, at 4:26 p.m., SEC Chair Gary Gensler revealed that the agency’s account had been hacked, leading to the unauthorized false tweet. As a result, the price of Bitcoin suddenly dropped to $46,800 and further decreased to $45,881.

$900 Million Loss Due to False Information
The value of the cryptocurrency market experienced a significant decline following the dissemination of a fake approval post for spot ETFs. Coinglass data reveals that Bitcoin’s market capitalization decreased by approximately $50 billion within the past 24 hours. The price of the leading cryptocurrency dropped to $890 billion before recovering to approximately $900 billion at the time of publication.

Enhancing Security Measures
This incident has raised concerns about the SEC’s security protocols for safeguarding its social media accounts. Some market participants have criticized the regulator for its seemingly lenient approach to protecting these accounts. Additionally, questions have been raised about the SEC’s ability to protect trillion-dollar markets if it cannot adequately safeguard its social media presence.
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Bitcoin ETFs