💥📰 Breaking News: Fake SEC Tweets Cause Bitcoin Liquidation Worth $90 Million 💥📰

Those tweets resulted in an immediate increase of Bitcoin prices to $47,680 from the previous level of $46,800. However, when it was discovered that the tweets were fake, the price dropped to as low as $45,400.

A fake tweet about a Bitcoin ETF approval caused $90 million in liquidations.

Introduction

In a shocking turn of events, a series of fake tweets from the U.S. Securities and Exchange Commission (SEC)’s X account caused panic in the bitcoin world. The tweets, which falsely hinted at the approval of a bitcoin exchange-traded fund (ETF), led to massive price volatility and the liquidation of nearly $90 million worth of bitcoin long and short positions. This incident highlights the risks of manipulation in the cryptocurrency industry.

The Hack and the Spike

On Tuesday, hackers managed to gain control of the SEC’s X account and used it to post a tweet implying that the much-anticipated bitcoin ETF had finally received approval. The tweet was quickly deleted, but not before it caused a sudden spike in bitcoin prices. Within minutes, the price soared from $46,800 to $47,680. However, it was soon revealed that the tweet was fake, and the price plummeted to as low as $45,400.

Punters, Bots, and Chaotic Whipsaws

Despite the tweets being debunked, traders and automated bots reacted swiftly to the initial post. Data shows that over $500 million in futures positions were opened in a ten-minute frenzy. However, the highly-leveraged positions suffered as prices whipsawed. Around $50 million in long positions were liquidated, and $36 million in short positions were also impacted.

Open interest spiked after the fake SEC post. (Coinglass)

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Liquidation and Its Significance

Liquidation occurs when an exchange forcefully closes a trader’s leveraged position due to a loss of initial margin. Essentially, it happens when a trader fails to meet the margin requirements to keep the trade open. While this may sound disastrous, the data indicates a silver lining for traders. The liquidation of leveraged positions signifies a decline in price volatility, providing a short-term indication that leverage is being washed out from popular futures products.

Q&A Content

Q: Are there any upcoming decisions on bitcoin ETFs? A: Yes, there are thirteen proposed bitcoin ETFs awaiting a decision, which is expected on Wednesday.

Q: What are the odds of bitcoin ETF approval? A: Bloomberg analysts place the approval odds at over 90%, while crypto market bettors have a relatively smaller 85% chance of approval.

Q: How did the SEC’s social account get hacked? A: The incident raises concerns about the SEC’s security measures. Some market participants questioned how the regulatory body can protect trillion-dollar markets if it can’t safeguard its social accounts.

The Fallout and Lessons Learned

The aftermath of this incident leaves room for reflection. Market observers and participants alike are questioning the SEC’s security measures and its ability to navigate the complexities of the rapidly evolving cryptocurrency landscape. The volatility caused by fake news highlights the importance of thorough research and skepticism in the industry. It serves as a reminder that investors should remain cautious and vigilant.

Future Outlook and Investment Recommendations

As the cryptocurrency market matures, incidents like these are expected to become less prevalent. However, it is crucial for investors to stay informed and adopt risk management strategies. By carefully assessing the authenticity of news and understanding the implications of price volatility, investors can navigate the market with greater confidence.

References:

1. Bitcoin Price | BTC Price Index and Live Chart – Blocking.net
2. SEC-approved Bitcoin ETF Hacked? X Account Briefly Said Otherwise
3. Data Shows
4. Bitcoin ETF Approval Odds Raised to 90% by Bloomberg Drop Polymarket
5. Twitter – WalkerAmerica

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