The price of Bitcoin saw dramatic fluctuations following a security breach on the official Twitter account of the US Securities and Exchange Commission (SEC). A fraudulent tweet was posted at 4:11PM EST on Tuesday, falsely announcing the approval of a spot Bitcoin exchange-traded fund (ETF). This led to a surge in Bitcoin’s price from around $46,600 to $47,680, marking a two-year price high for the leading cryptocurrency.
However, 15 minutes later, SEC chair Gary Gensler issued a statement warning that the agency’s account had been compromised, resulting in an “unauthorized tweet,” and denying any approvals had been granted. This sent Bitcoin’s price tumbling to nearly $45,500 after the initial surge.
Despite the volatility, the SEC is expected to approve spot Bitcoin ETFs this Wednesday, with the first Bitcoin ETF potentially starting trading as soon as Thursday. This incident has highlighted the SEC’s outsized influence and Bitcoin’s continued price sensitivity. Crypto markets remain largely unregulated, contributing to extreme volatility. But regulators wield significant power through signals around support or opposition. Even after today’s movements, Bitcoin’s price remains up 8% over the past two weeks and 166% over the past year.
The hacking incident and its market impact did not go unnoticed in Washington. Prominent political figures have voiced their concerns and called for a thorough investigation. Senator Cynthia Lummis, a US Senator from Wyoming, expressed concerns about market manipulation resulting from such fraudulent announcements. Similarly, Senator Bill Hagerty from Tennessee stressed the need for accountability, drawing parallels with the standards expected of public companies. Additionally, Rep. Bill Huizenga, Chairman of the House Financial Services Oversight and Investigations Subcommittee, questioned the broader implications of the SEC’s actions.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Bill Huizenga, Bill Hagerty, Cynthia Lummis, Charles Gasparino, Gary Gensler |
| Companies | CoinGecko, US Securities and Exchange Commission, FOX Business Network, House Financial Services Oversight and Investigations Subcommittee |
| Currencies | Bitcoin |
| Securities | None |
