Confusion in the crypto industry
Fake news triggers Bitcoin turbulence
January 10, 2024, 12:51 a.m
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Crypto investors have been looking forward to the approval of the first Bitcoin ETFs for a long time, and a decision from the US Securities and Exchange Commission is expected to be imminent. But then a message from the authorities on X causes irritation.
A hoax has sent the crypto industry into turmoil. In a statement on Platform Approval for listing on all national registered securities exchanges has been granted.
But just a few minutes later the denial followed. Gary Gensler, the head of the agency, clarified that the report was incorrect. Hackers gained access to the SEC user account and placed the message there, he wrote on X. The SEC has not yet approved the listing and trading of exchange-traded spot Bitcoin products.
The largest and best-known cyber currency, Bitcoin, initially jumped to $48,000 after the false report before falling to under $45,000. The digital currency was most recently quoted 3.15 percent lower at $45,513. A decision from the SEC is expected on Wednesday. Approval would be a turning point for the industry, which has been trying to bring the product to market for a decade.
The Bitcoin price had recently benefited significantly from speculation about a hoped-for positive decision: since mid-October alone, it had gained 76 percent at its peak.