•Based on our investigations, the post was not published due to any breach of X’s systems, but rather because an unknown person took control of a phone number linked to the SEC’s account through a third party,”
•Bitcoin prices rose after the unauthorized post, but quickly fell below $46,000 after the SEC clarified that it had not yet approved a Bitcoin exchange-traded fund. It is trading at around $45,685, down about 2.3% in the last 24 hours.
•An SEC spokesperson told CNBC that the unauthorized tweet regarding bitcoin ETFs was not made by the SEC or its employees.
•A post published on social media said that the regulatory body approved the trading of Bitcoin ETFs, which was denied by the Chairman of the Securities and Exchange Commission, Gary Gensler.
•The market expects the regulator to give the green light to Bitcoin exchange-traded funds. The SEC is expected to act on it this week after opposing the idea for years.
•Gensler has pursued cryptocurrencies during his tenure, with the SEC taking legal action against exchanges like Coinbase and Ripple, accusing both of them of selling unregistered securities.
•Market Volatility and Position Liquidation Meanwhile, price fluctuations following a series of fake tweets from the SEC's X account caused the liquidation of approximately $90 million worth of long and short positions in Bitcoin, exposing manipulation risks associated with the industry.
•However, gamblers and automated bots quickly reacted to the tweets. The data shows that more than $500 million in futures positions were opened in the ten-minute period after the initial publication. But the highly leveraged positions took a hit as prices fell, with about $50 million worth of long trades liquidated while $36 million worth of short trades were affected.
•Liquidation refers to exchanges forcibly closing a leveraged trader's position due to partial or total loss of the trader's initial margin. This occurs when a trader is unable to meet the margin requirements for a leveraged position (failing to obtain sufficient funds to keep the trade open).
•Such data is useful to traders because it serves as an indication that leverage is effectively being eliminated from popular futures products – acting as a short-term indicator of declining price volatility.
•A decision on thirteen proposed bitcoin exchange-traded funds is expected on Wednesday, with Bloomberg analysts putting the odds of approval at more than 90% and bettors on the cryptocurrency market at a relatively smaller 85%.
#Stay tuned More breaking news •
