SEC Twitter Hack Sparks Bitcoin Price Frenzy

The U.S. Securities and Exchange Commission (SEC) clarified that a misleading social media post about the approval of bitcoin exchange-traded funds (ETFs) was the result of unauthorized access to its official Twitter account. The false announcement briefly caused a spike in bitcoin prices before dropping below $46,000. The SEC confirmed that the compromised account had been accessed by an unknown party for a brief period, and they are collaborating with law enforcement to investigate the incident and address any potential misconduct. The SEC is anticipated to make a decision on bitcoin ETFs this week, with more than a dozen asset managers filing applications for such funds.

The misleading tweet added a layer of uncertainty to the already eagerly awaited SEC decision on bitcoin ETFs, a move that crypto advocates believe could attract a new wave of investors to digital assets. Despite SEC Chair Gary Gensler’s historical skepticism towards crypto, the potential approval of bitcoin ETFs has been a source of optimism in the cryptocurrency market. Gensler, who previously cautioned investors about crypto-related products, had used social media earlier in the week to emphasize caution.