NEW DELHI (CoinChapter.com) — In a funny twist of events, the US Securities and Exchange Commission (SEC) had its X account hacked by unknown entities. The regulatory body that warns investors not to invest in cryptos because of scams and fake news became the perpetrator of fake news.
The SEC’s X account shared a now-deleted post that claimed the regulator had approved Bitcoin (BTC) ETFs. As a result, buyers rushed to the market in droves, driving BTC price to a high of $47,900 on Jan. 9, before the SEC clarified the error.
The crypto market‘s reaction to the news lent irony to the incident, with SEC chair Gary Gensler often highlighting how easy it was to manipulate prices of crypto assets through fake news and rumors.
Hacked SEC Account Not Our Fault- X
Though the post was taken down within 20 minutes, it received over 1 million views. X’s safety team stated that the fault was not with their system; rather, an “unidentified individual” had obtained control over a phone number associated with the account.
The X safety team further highlighted that the SEC account had not activated two-factor authentication on its account, making it vulnerable. As such, the hack was a result of the SEC’s lack of safety precautions and not a fault of the social media site.
SEC Hack Sparks Fear of ETF Approval Delays
The wider crypto market expects the SEC to finally approve a batch of Bitcoin spot ETFs on June 10 in a landmark moment for the sector. However, news of the hack has raised concerns that the regulatory body might delay or withhold approval for BTC spot ETFs.
Reuters reported that executives of several issuers were concerned that the hack would provide the SEC with an excuse to delay its decision.
However, Nate Geraci, president of the investment advisory firm ETF Store, stated that he expected the Gary Gensler-led regulatory body to heed the “hard deadline” for approving the ETF applications.
There’s a regulatory process to follow here. That doesn’t involve X
Geraci said
Meanwhile, Blackrock and Ark Investment Management, two of the BTC spot ETF applicants, have lowered the fees for their proposed fund. The move came as the firms looked to undercut competitors even before the SEC approval.
Crypto Desperates Rush To BTC, Then Leave
The ETF approval post from the hacked SEC account unleashed a sea of buyers in the market, propelling BTC price to its highest level since late Dec. 2021.
However, after it became clear that the post was from a hacked SEC account, the selling pressure forced BTC price to shed all gains during late trading on Jan. 9. Moreover, the bearish pressure continued on Jan. 10, with Bitcoin price dropping nearly 3% to a daily low near $44,900.
If the SEC does not approve the ETF applications, BTC price could continue its downtrend and drop to the 20-day EMA (red wave) support near $44,000.
Breaching the immediate support might force BTC bulls to defend the support near $41,200.
Interestingly, anti-Bitcoin investor Peter Schiff believes that even if the SEC approves a BTC spot ETF, the market might fail to rally. The pro-gold veteran advised followers it was “better to sell today.“
However, an approval would likely see BTC price breach the immediate resistance near $48,000 and target the resistance near $50,500 before retreating.
The RSI for BTC remained neutral, with a score of 56.06.
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