Bitcoin rapidly surged past the $47,000 mark before retracing to its current level following numerous posts suggesting that some Bitcoin ETF funds would receive approval from the SEC.
The retreat in Bitcoin’s price has turned the $47,000 level into a resistance point. However, the price trend could be influenced by open interest and spot trading volume. If open interest and spot trading volume increase, coupled with SEC approval, Bitcoin may break out of its downward trajectory. In such a scenario, the possibility of reaching $50,000 becomes a realistic prospect.
SEC Mispublishes Information
US lawyers and senators are urging Congress to investigate the SEC after their respective X accounts were compromised, spreading false information that immediate trading approval had been granted for Bitcoin ETF funds.
Fox Business’ Charles Gasparino reported that securities attorneys informed him that the SEC would need to conduct its own inquiry into market manipulation. Bloomberg ETF analyst James Seyffart speculated that SEC Chairman Gary Gensler would likely express anger towards the personnel responsible for the security breach, if indeed that is what transpired.
BREAKING: Securities lawyers tell @FoxBusiness the @SECGov will have to investigate itself for market manipulation after moving the price of $BTC up and down following the hacked tweet that it had approved the first spot BTC ETF and then saying it was fake. That said, for the SEC…
— Charles Gasparino (@CGasparino) January 9, 2024
Cane Island’s Chief Investment Officer, Timothy Peterson, declared that the SEC’s security breach constitutes a market manipulation event, precisely what the commission is tasked with preventing to protect investors.
The @SECGov false information caused a #Bitcoin market price fluctuation – largely a loss – of about $31 billion. That's larger than the market capitalization of each of the 250 bottom S&P 500 stock constituents. It is also roughly the size of the #FTX bankruptcy. pic.twitter.com/GOYcDVPHFn
— Timothy Peterson (@nsquaredvalue) January 9, 2024
The SEC’s misinformation post existed for 20 minutes before being taken down, garnering at least 4.4 million views during that timeframe.
Related: Ex-SEC Chair Foresees Inevitable Approval of Bitcoin ETF
Despite this development, Bloomberg ETF analyst Eric Balchunas stated that the official approval for the Bitcoin ETF for immediate trading is expected around 4-5 pm on January 10, according to US time.
