Bitcoin Prices Surge to $48,000 on False ETF Approval Tweet, Then Plunge After Hack Revealed

Key Points:

• A false ETF approval rumor fueled a dramatic price surge to $48,000, followed by a crash after the SEC debunked it.
• The SEC’s verdict on Bitcoin ETFs, expected today, could mark a turning point with potential institutional investment influx, but concerns about a “sell-the-news” correction remain.

Crypto enthusiasts witnessed a rollercoaster ride on Tuesday, with Bitcoin prices surging to a near two-year high of $48,000 before plummeting back towards $45,000. The drama unfolded after a fake post on the US Securities and Exchange Commission’s (SEC) X account falsely announced approval of Bitcoin ETFs.

Read more: Grayscale Spot ETF: Basic Knowledge and Positive Future Outlook

Bitcoin Prices Surge to $48,000: Crypto Dreams Dashed by False SEC Announcement

The flash rally, fueled by optimism over the long-awaited ETF decision, quickly gave way to confusion and disappointment as the SEC swiftly debunked the claim. The incident exposed a vulnerability in the agency’s communication channels and served as a stark reminder of the volatility inherent in the crypto market.

Despite the setback, many analysts remain optimistic about the prospects of ETF approval as early as Wednesday. The ARK 21 Shares application, one of the most closely watched, faces a deadline for the SEC’s response today. Approval of this and other applications could mark a watershed moment for the crypto industry, ushering in a new era of institutional investment in Bitcoin.

Bitcoin Faces “Sell-the-News” Test After ETF Announcement

However, concerns linger about a potential “sell-the-news” scenario following any formal ETF approval. Having rallied over 160% in the past year, Bitcoin could face profit-taking from investors who capitalize on the anticipated boost in mainstream appeal.

In conclusion, Tuesday’s trading frenzy served as a microcosm of the excitement, uncertainty, and potential pitfalls surrounding the long-awaited ETF approval. While the outcome remains uncertain, one thing is clear: the future of Bitcoin and the broader crypto market hangs in the balance as the SEC prepares to deliver its verdict.

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