- After the fake news was shared, Bitcoin gained 2.5% to a new 19-month high
- When the truth came out, the flagship crypto lost as much as 6%
A post on social medium X led to wild swings in the price of Bitcoin during Tuesday’s trading session. The author of the post, claiming to represent the US Securities and Exchange Commission (SEC), wrote that the regulator had approved a spot Bitcoin exchange-traded fund (ETF). Later, the news turned out to be fake, leading media reported.
The SEC had not enabled 2FA
The social medium’s Safety team later revealed that the SEC had not enabled two-factor authentication (2FA), letting a hacker gain access to its account.
After the fake news was shared, Bitcoin gained 2.5% and reached a new 19-month high of almost $48,000. The whole crypto community turned its attention to the development, and many began celebrating the decision, which has yet to happen.
Dramatic losses
When the truth came out, the flagship crypto lost as much as 6%, falling to $45,100. It’s trading for just under $46,000 according to CoinGecko data at the time of writing.
The price volatility liquidated derivatives worth over $50 million on crypto exchanges within an hour according to CoinGlass data. Liquidations occur when margin is lost and the exchange closes open positions using borrowed money.
Not the first false X post in a day
The Bitcoin ETF news was not the first fake news on Tuesday. It was preceded by another untruthful X post: that the mascot of Dogecoin had died. The DOGE token gained as much as 9% on the news.
Bad news for bulls
According to Alex Krüger, the co-founder of Asgard Markets quoted by CoinDesk, Bitcoin might not gain as much as bulls hope when the SEC does approve the ETFs. He’s not the only one of that opinion. Krüger posted on X that Bitcoin’s upside will be capped pending actual ETF influx. The deadline for the SEC to approve or reject Ark Invest/21 Shares’ Bitcoin ETF application is today.
