What a twist in the history of Bitcoin ETFs. Today, a… surprising event? The official Twitter account of the United States Securities and Exchange Commission (SEC) was hacked, leading to a false, but convincing, announcement regarding the approval of Bitcoin ETFs. This news had an immediate and dramatic impact on the market, leading to a meteoric rise in the price of Bitcoin and causing a stir in the community of investors and regulators.
Immediate Impact on the Market
The fraudulent announcement of the SEC’s approval of Bitcoin ETFs has sparked a chain reaction in the world of digital finance. In a few minutes, the price of Bitcoin saw a direct riseillustrating the market’s reactivity to the news.
Here is the fake tweet in question (now deleted):
Translation :
“Today, the SEC approves the listing of #Bitcoin ETFs on all registered national exchanges.
Approved Bitcoin ETFs will be subject to ongoing monitoring and compliance measures to ensure continued investor protection.
“Today’s approval improves market transparency and provides investors with efficient access to digital asset investments within a regulated framework” Gary Gensler. “
Investors, motivated by the hope of institutional legitimization of Bitcoin via ETFs, rapidly increased their investmentspushing the price of BTC, followed by a relapse:
Completely normal reaction, many investors choose to “Sell the News” (Sell at the announcement) that is to say, to sell their assets just after the announcement to make a profit as quickly as possible. The price rose to a peak around $48,000. However, this increase turned out to be short-livedas the truth behind the announcement was quickly revealed, leading to an equally rapid market correction, the price rectifying around $46,000.
Regulatory Implications and SEC Responses
The hacking incident raises important questions about information security and official communication in the financial sector. The SEC, as a regulatory body, plays a crucial role in monitoring the financial market, including that of cryptocurrencies.
Here is the message from Gary Gensler announcing that the SEC account had been hacked and published false information:
Translation :
“The SEC Twitter account was compromised and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products. »
The SEC also quickly reacted on his account, 20 minutes later, denying the announcement and informing the public of the hacking of his account. This incident could have repercussions on the way regulators communicate in the future and could push for stronger IT security measures.
But it was already too late…
Community reaction
Without surprise, community reaction was negative. But all the same, two camps were created; On the one hand, some saw this as proof of the market’s sensitivity to news and with that, an opportunity to speculate. On the other hand, this incident was seen as a warning about the risks of disinformation and the dangers inherent in a highly reactive and easily influenced market.
Critics of this second perspective point out that excessive dependence of the market on news and rumorsespecially when they come from official sources like the SEC, can lead to financial instability and impulsive decision-making by investors.
In any case, many Internet users took this event as a good opportunity to make fun of this now infamous tweet from the SEC last October:
Translation :
“Be careful what you read on the Internet. The best source for information on the SEC is the SEC. »
Irony, when you hold us.
The SEC Twitter account hack incident sparked a wave of reactions within the cryptocurrency community, oscillating between sarcasm, suspicion and open criticism. These reactions highlight the complex and sometimes ironic nuances of the world of digital finance. Here is an overview of these various points of view:
A widespread feeling among community members is that this act of hacking was not a simple accident or mistake by an intern, but rather a deliberate maneuver to manipulate the market.
“I have a feeling that if this wasn’t an intern mistake, whoever made this false announcement probably made a lot of money on volatility…”
Another common reaction is the direct accusation of corruption and manipulation by highly placed individuals. A cynical comment puts it this way:
“Compromise ? More like: ‘I’m a corrupt career politician, I needed to make a quick million, thanks pigeons.’”
the hacker: pic.twitter.com/9L5VPmZl0Y
— SMFX 🔑 (@_SMFX_) January 9, 2024
Finally, most comments express intense frustration and disappointment with the SEC. One of them sums up this feeling:
“It was either insider trading, market manipulation, woefully poor security or sheer incompetence that led to this tweet. Either way, this is not acceptable from the people who are supposed to decide what is safe to do with our money. Down with the SEC.”
Conclusion
This event highlights, for many, the volatility of the cryptocurrency market and the speed with which information can influence prices. It also raises important questions about information security and official communication in the financial sector.
As the market stabilizes and the ramifications of this incident continue to be analyzed, one thing remains clear: 2FA must be enabled on X… Apparently the SEC had not enabled its own…
Sources: Decrypt, X, Reddit, Cryptoast
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