The cryptocurrency market is abuzz with anticipation as the deadline for the approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States looms. Today, January 10th, marks the final day for the US Securities and Exchange Commission (SEC) to make a decision on Bitcoin ETF applications, and the entire market is eagerly awaiting the outcome.
However, the lead-up to this critical deadline has been marred by a security breach on the SEC’s website. On January 9th, the website was compromised, leading to the dissemination of false information claiming that spot Bitcoin ETFs had been approved. SEC chair Gary Gensler later confirmed that an ‘unauthorized tweet was posted,’ dispelling the misinformation and asserting that no filings have been approved.
Investigations revealed that the SEC’s X account had been hacked due to the absence of two-factor authentication, enabling the hackers to post the fraudulent tweets about ETF approval. The timing of the breach, just before the ETF decision deadline, has sparked speculation about the SEC’s involvement in orchestrating the incident to gauge market reactions. Nevertheless, the SEC has vehemently refuted any complicity and attributed the breach to a security protocol lapse.
The dissemination of false information triggered significant price volatility, resulting in the liquidation of nearly $90 million worth of bitcoin (BTC) long and short positions. This episode underscored the susceptibility of the crypto industry to market manipulation risks.
Following the debunking of the fake news, Bitcoin experienced a transient 5% surge, reaching $47,900 before retracing. Presently, Bitcoin is trading around $45,560, having briefly touched $47,900 in response to the erroneous reports. The breach of the key $45,000 resistance level suggests that buyers have absorbed selling pressure and are poised to drive the price higher. If spot ETF products receive the SEC’s approval, the next significant target is the psychological $50,000 threshold.
From a technical standpoint, Bitcoin’s daily Relative Strength Index (RSI) stands at 74. As the market awaits the official decision, the potential for Bitcoin to breach the $50,000 mark remains a focal point of interest.
