In an unexpected turn of events, the U.S. Securities and Exchange Commission (SEC) categorically denied approving a bitcoin exchange-traded fund (ETF) after a suspicious post on X (formerly Twitter) claimed otherwise. The alleged approval sparked a momentary surge in Bitcoin prices, with the cryptocurrency peaking at over $46,000. Investors, anticipating the green light for the ETF, had driven up the price in anticipation.
The message that the hacker posted on SEC's account, which has since been taken down. (Source: X.com @TheCryptoLark)
The purported ETF approval raised hopes among cryptocurrency investors, offering an alternative means of investing in Bitcoin without directly purchasing the cryptocurrency on platforms like Binance or Coinbase. However, SEC Chairman Gary Gensler swiftly clarified on his personal account that the SEC had not granted approval for any Bitcoin ETFs. The chairman attributed the misleading post to a compromise of the SEC's social media account, providing no further details on the breach.
The aftermath of the unauthorised announcement was evident in the fluctuating Bitcoin prices. The cryptocurrency experienced a surge from $46,730 to nearly $48,000, only to plummet to around $45,200 following the SEC's denial. As of 6:15 p.m. ET, Bitcoin was trading at approximately $46,150. The sudden market shifts left investors grappling with uncertainty.
The revelation of the SEC's compromised account prompted swift criticism, particularly from Republican politicians dissatisfied with Gensler's handling of the situation. Senator Bill Hagerty, a member of the Senate Banking Committee, demanded accountability from the SEC, emphasising the need for a thorough investigation into the security lapse.
This incident is not the first time false information has caused market turmoil regarding Bitcoin. A similar occurrence took place in October, falsely suggesting that BlackRock had received approval for a Bitcoin ETF. The ensuing market frenzy mirrored the recent events, highlighting the susceptibility of cryptocurrency markets to misinformation.
Elon Musk's restructuring of Twitter's content moderation and security teams in late 2022 drew attention to concerns about account integrity. Internet watchdog groups flagged an increase in toxic content on X, coupled with worries about the platform's vulnerability to account takeovers.
As the SEC navigates the aftermath of the hacking incident, questions surrounding the integrity of regulatory bodies and their communication channels arise. Investors, already on edge due to market uncertainties, now grapple with concerns about the security of official announcements. The need for a thorough investigation and enhanced security measures is underscored by the potential consequences of such misinformation, particularly in the context of financial markets and election years.
The recent events serve as a stark reminder of the fragility of cryptocurrency markets and the impact of misinformation. Rebuilding trust requires not only improved cybersecurity measures but also a concerted effort to enhance transparency and accountability in regulatory communications. As the cryptocurrency landscape continues to evolve, a resilient and secure foundation becomes imperative for sustainable growth.
US-based Bitcoin ETFs see robust capital inflows of $257.3 million, signaling renewed investor interest. Notable providers like Grayscale and BlackRock report positive inflows, reflecting a bullish sentiment. Debates on transparency and market manipulation resurface amidst BTC's stability at $66,109.
Xu LinCryptocurrency market bounce aligns with stablecoin market cap growth, signaling increased industry inflows. Recent plateau suggests stagnant sentiment. Future stablecoin trends may offer insights into broader market direction.
Huang BoBitcoin remains stable above $66,000, with significant whale accumulation indicating bullish sentiment. Large investors acquire over 3400 BTC, fueling anticipation of a price rally. Market sentiment suggests increased demand from whales may drive upward movement. Despite subdued trading, the positive trend in the U.S. Spot Bitcoin ETF boosts investor confidence.
EdmundBitcoin surged to $66,000 but faces potential correction with 18,000 options expiring today. Max Pain at $63,000 suggests price pressure. Despite softer CPI data, demand for short-term downside protection remains. Long-term outlook optimistic, with growing institutional involvement, especially with CME Group's Bitcoin spot trading introduction.
Xu Lin600 companies invest $3.5 billion in spot Bitcoin ETFs via SEC filings. Major players include Morgan Stanley and Millennium Management. Despite recent decreases in inflows, demand remains strong among financial institutions.
Huang BoBitcoin's correlation with US stocks rises, indicating market shift. Despite economic uncertainties, Bitcoin rebounds, outpacing S&P 500. ETF inflows signal investor interest. Whale activity decline noted, but could signal bullish trend if reversed.
EdmundOn May 15, US spot bitcoin ETFs saw robust performance, accruing $303 million in gains over three days. Blackrock's IBIT observed zero inflows, while Grayscale's GBTC recorded $27 million inflows. FBTC led with $131 million inflows, emphasizing a competitive landscape among ETFs.
Xu LinWhale loses 1,155 BTC ($71M) in sophisticated hack, highlighting crypto security risks. Hacker exploits phishing tactic, underscores importance of offline key generation, hardware wallets, and cautious transaction practices. Tips include verifying addresses, conducting test transfers, and exploring multi-signature methods for added security.
Huang BoToncoin [TON] emerges as strong competitor to Bitcoin [BTC] in Layer 1 Network. Toncoin outperforms BTC with 160% gain, higher active addresses. Despite surge, trader sentiment sours, contrasting Bitcoin's positive sentiment.
EdmundBracebridge Capital invests $363 million in Bitcoin ETFs, joining institutional trend. Wisconsin becomes first local government to disclose Bitcoin investment. Major institutions like JPMorgan, Wells Fargo, BNP Paribas, and BNY Mellon also enter crypto space.
Xu LinWe will explore the concept of cryptocurrency banking systems, focusing on Bitcoin as a case study, and delve into the advantages, challenges, and potential implications of distributed management in the realm of cryptocurrencies.
BitcoinworldStablecoin issuers Circle and Tether have blacklisted over half of the stolen funds, according to available information.
BeincryptoEuler Fianance protocol was attacked almost a week ago, which resulted in a loss of more than $180 million. And ...
BitcoinistThe community criticized the airdrop announced by the AllianceBlock team.
BeincryptoFTX confirmed recovering over $5 billion in crypto, cash and liquid securities, $415 of which was stolen through hacks.
BeincryptoThe notorious North Korean hacker collective known as Lazarus has had a busy weekend moving millions of dollars in Ethereum.
cryptopotatoIt is worth noting that funds have not moved from the now-defunct Mt.Gox exchange’s cold wallets since 2018.
cryptopotatoNorth Korea seems to be using hacked funds to finance their new nuclear adventures.
Others
The Curve Finance hack has been a major news article within the crypto community over the past weeks after a ...
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