The cryptocurrency markets experienced one of their most chaotic moments in 2024 when a tweet from the SEC’s official Twitter account falsely indicated the approval of spot Bitcoin ETFs. This announcement led to a rapid surge in Bitcoin’s price, followed by a subsequent drop.
Shortly after the misleading tweet, SEC Chairman Gary Gensler alerted the public that the SEC’s Twitter accounts had been compromised. The tweet seemed credible at the time, causing investors to react quickly. However, upon checking the EDGAR system, no official approval was found, contradicting investors’ expectations that the announcement would soon reflect in the system.
Chairman Gensler confirmed the hack, stating, “This SECGov Twitter account was hacked and an unauthorized tweet was sent out. The SEC has not approved the listing and trading of spot bitcoin ETF products.”
The impact of this speculative incident on the actual ETF approval remains unknown. The SEC is expected to announce its official decision within 24 hours. The incident is likely to significantly affect market sentiment negatively and demoralize institutional investors regarding speculative market movements.
This event serves as a stark reminder of the vulnerability of digital platforms and the potential for misinformation to disrupt financial markets. Investors are advised to remain vigilant and verify information through official channels.