In a dramatic turn of events, Bitcoin experienced significant price volatility amid growing confusion over the U.S. Securities and Exchange Commission’s (SEC) stance on the approval of a spot Bitcoin ETF. The cryptocurrency’s value plunged and recovered within a short time frame, leading to widespread uncertainty among investors.
The turmoil began when the SEC posted an order on its website, suggesting that proposals for listing a spot Bitcoin ETF had been approved. However, adding to the confusion, this link was soon removed from the SEC’s official site. This development followed an incident the previous day when the SEC’s Twitter account was compromised, and a tweet falsely claimed that the much-anticipated approval for the spot Bitcoin ETF had been granted.
After a brief period of uncertainty, the link reappeared on the SEC’s website, seemingly confirming the approval of the spot Bitcoin ETF. This series of events triggered a wave of market reactions, causing Bitcoin’s price to plummet below $45,000, then swiftly rebound to around $46,000. The rapid price movements resulted in approximately $30 million in liquidated leveraged positions, as reported by the cryptocurrency data platform Coinglass.
The sequence of events underscores the sensitivity of the cryptocurrency market to regulatory news and highlights the significant impact of official announcements on investor sentiment and market dynamics. As the situation continues to unfold, the crypto community remains vigilant, closely monitoring developments for clearer insights into the SEC’s position on the future of Bitcoin ETFs.