# Fake Bitcoin ETF Approval Tweet Triggers $90M in Liquidations
In a recent turn of events, a fake tweet about the approval of a Bitcoin Exchange-Traded Fund (ETF) led to a staggering $90 million in liquidations³. The tweet originated from the U.S. Securities and Exchange Commission (SEC)’s X account, which was later revealed to have been compromised³.
The fraudulent post appeared on the SEC’s official X account shortly after 16:00 Washington time (21:00 GMT). It claimed that the regulator had “granted approval for #Bitcoin ETFs to be listed on all registered national securities exchanges”³. This announcement was quickly picked up by social media users and business news outlets, causing a significant stir in the cryptocurrency market³.
The immediate impact of the tweet was a sharp spike in Bitcoin prices, which jumped to $47,680 from the $46,800 level³. However, as soon as the tweet was identified as fake, the price fell as low as $45,400³. Despite the swift correction, the damage had already been done. In the ten-minute period following the initial post, over $500 million in futures positions were opened³.
The highly-leveraged positions took a hit as prices whipsawed: Some $50 million in longs were liquidated while $36 million in shorts were impacted³. Liquidation refers to when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin³. It occurs when a trader is unable to meet the margin requirements for a leveraged position (fails to have sufficient funds to keep the trade open)³.
This incident has highlighted the manipulation risks associated with the industry and raised questions about the SEC’s security measures to protect its account³. It also underscores the volatility of the cryptocurrency market and the potential impact of regulatory decisions on market dynamics³.
Investors are now eagerly awaiting an official announcement on the potential approval of spot bitcoin ETFs, which is expected this week³. The approval of such ETFs would mark a significant milestone for the cryptocurrency market in gaining acceptance in mainstream financial markets³.
As always, investors are advised to exercise caution and conduct thorough research before making any investment decisions, particularly in volatile markets such as cryptocurrencies³.
Source: Conversation with Bing, 10/01/2024
(1) Fake Bitcoin ETF Approval Tweet Causes $90M in Liquidations – CoinDesk. https://www.coindesk.com/markets/2024/01/10/fake-bitcoin-etf-approval-tweet-causes-90m-in-liquidations/.
(2) Fake Bitcoin ETF Approval Tweet Causes $90M in Liquidations. https://www.msn.com/en-us/money/other/fake-bitcoin-etf-approval-tweet-causes-90m-in-liquidations/ar-AA1mJWEW.
(3) Fake SEC’s Tweets spark Bitcoin price volatility. https://www.msn.com/en-us/money/markets/fake-sec-s-tweets-spark-bitcoin-price-volatility/ar-AA1mK6TB.
(4) Fake Bitcoin ETF Approval Tweet Causes $90M in Liquidations. https://www.tradingview.com/news/coindesk:5cc06da1d094b:0-fake-bitcoin-etf-approval-tweet-causes-90m-in-liquidations/.