A Twitter Hack, a Fake ETF Approval, and a Rollercoaster for Bitcoin Prices
In the latest episode of “Cryptocurrency Rumors Gone Wild,” the U.S. Securities and Exchange Commission (SEC) is inadvertently playing the lead role. Picture this: a tweet pops up from the SEC’s official X handle, announcing the long-awaited approval of bitcoin ETFs. The crypto world goes into a frenzy, with Bitcoin’s price momentarily soaring like a rocket… only to come crashing down quicker than a failed SpaceX landing.
Turns out, the SEC’s famed @SECGov X/Twitter account was hacked! “The unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its staff,” an SEC spokesperson clarified. This false social media proclamation sent Bitcoin’s price on a brief joyride above the clouds, before it nosedived below $46,000.
The @SECGov X account was compromised, and an unauthorized post was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.
SEC on X (link)
In a classic ‘not so fast’ moment, the SEC, later on Tuesday, put on its detective hat and discovered that their Twitter account had been compromised by some unknown party, possibly a crypto-enthusiast daydreaming about ETF approvals. The time of the hack? Just after 4 p.m. ET – prime time for market shenanigans.
“The SEC will work with law enforcement… to investigate the matter and determine appropriate next steps,” said the SEC spokesperson, likely while shaking their head in disbelief at the audacity of the digital intruder.
The irony here is as thick as the Bitcoin blockchain. The SEC, known for its years of playing hardball against bitcoin ETFs, was suddenly (and falsely) seen as embracing them. This week, the SEC was actually expected to make a real decision on these ETFs, with asset managers lining up like kids outside a candy store.
What’s more, Bitcoin’s price had been on a steady climb, fueled by the optimism of ‘soon-to-come’ spot bitcoin ETFs. These ETFs, seen as the Holy Grail by crypto advocates, are believed to potentially usher in a new wave of investors – those who are intrigued yet intimidated by the wild west of crypto custody.
SEC Chair Gary Gensler, not exactly a poster boy for crypto love, had earlier taken to social media to preach caution around crypto-related products. Last year, in a plot twist worthy of a Hollywood script, the SEC lost a court case against Grayscale, a crypto asset manager. The loss led to rampant speculation that the SEC might be softening its stance on bitcoin ETFs.
In conclusion, this little Twitter mishap serves as a reminder in the crypto world: Not all tweets are created equal, especially when they’re from a hacked SEC account. For now, the crypto community will have to wait a little longer for any real ETF approvals and maybe keep an eye out for any more Twitter-based plot twists. Stay tuned, folks!
