Crypto Market Experience Rollercoaster Session Following Fake News Released on Tuesday

During the late hours of Tuesday, the Crypto market experienced what it called a "rollercoaster session" following some announcements.

It was reported that the cryptocurrency trade valued at millions of dollars was liquidated following an unreliable announcement stating that Bitcoin spot ETFs have been approved in the world's largest economy.

The announcement was posted on X, formerly Twitter, and it reads,

The SEC grants approval for Bitcoin ETFs for listing on all registered national securities exchanges.

Following the fake news, the price of Bitcoin quickly rose $1.5K Due to the anticipation of the clearance, many crypto buyers inflated the price of Bitcoin to climb to $47.5K

"The SEC's @SECGov X/Twitter account has been hacked," this was a statement from a representative. "The SEC or any of its employees did not send messages on bitcoin ETFs."

The representative also claimed that "unauthorized access to and activity on" the account by an "unknown party" occurred in a different statement later made public. According to the statement, the party no longer has that unauthorized access, as reported.

After the fake post went viral, the price of Bitcoin skyrocketed to $48K before falling to $45,500 in a few minutes following the SEC's decision. When this report was filed, its trading value was less than $45.9K.

According to a report, in the last 24 hours, 70,973 traders were liquidated, with liquidation totalling $216.62 million. The largest single liquidation order happened on Bybit – BTCUSD and was valued at $6 million.

The financial watchdog said, 

• The SEC will work with law enforcement and partners across the government to investigate the matter and determine appropriate next steps regarding unauthorized access and related misconduct.

It was also reported that the  SEC.gov account did not have two-factor authentication activated, according to X's Safety team, and an attacker could take control of a phone number associated with the account early on Wednesday morning.

The SEC Chair Gary Gensler also affirmed that Bitcoin ETFs were yet to be permitted on his personal X account. "The SEC has not approved the listing and trading of spot bitcoin exchange-traded products," he stated. 

On Wednesday, it is widely anticipated that the regulator will accept applications for spot bitcoin ETFs. A representative for the SEC had earlier highlighted last week that any clearance for bitcoin ETFs would be visible on the organization's EDGAR database; X was not provided as a channel for disseminating the news. 

Cameron Winklevoss, co-founder of Gemini, expressed support, saying, "It would be great if the SEC would stop manipulating the Bitcoin market.”