False SEC Announcement Triggers Brief Bitcoin Price Surge

Bitcoin experienced a brief surge in value after a post on the US Securities and Exchange Commission’s (SEC) Twitter account announced the approval of new cryptocurrency exchange-traded funds (ETFs).

However, the SEC later deleted the post and stated that its account had been compromised. The social media platform confirmed that the compromise was not due to a breach of its systems. The SEC is expected to officially announce the new ETFs later this week.

The false post was quickly circulated on social media and news outlets before the SEC’s chair, Gary Gensler, refuted the announcement on his Twitter account. The SEC confirmed that there was unauthorized access to its account, which has since been terminated. X, the social media platform, conducted a preliminary investigation and concluded that the compromise was not a result of a breach of its systems but rather due to an individual gaining control of a phone number associated with the SEC’s account through a third party.

Bitcoin’s price initially rose to nearly $48,000 before dropping back to around $46,000.

Investors eagerly await the SEC’s official announcement as it would signify a significant milestone for Bitcoin’s acceptance in mainstream financial markets.

Several asset management firms have applied for SEC approval for spot Bitcoin ETFs, which would allow investors to bet on Bitcoin’s performance without actually owning the cryptocurrency.