False SEC Announcement Sparks High Volatility in Bitcoin
On January 10, 2024, the cryptocurrency market experienced intense volatility, with Bitcoin at the center of attention.
After a false announcement on Twitter claiming that the SEC had approved a Bitcoin ETF, the price of BTC skyrocketed, nearly reaching $48,000. Although Gary Gensler stated that the SEC’s account had been compromised, some speculate it was a simple programming error.
However, once the deception was revealed, the price dropped and fell back to the $45,000 range, even dipping as low as $44,000 throughout the day.
Hundreds of Millions of Dollars Liquidated on CEX
The impact was not limited to Bitcoin. The turmoil led to the liquidation of leveraged cryptocurrency positions amounting to $230 million.
Most of these liquidations were long positions, representing over $140 million, which is approximately $50 million more than the short positions. Currently, Bitcoin’s annual volatility is estimated at 50.97%, the highest in weeks.
These events occur amidst intense speculation about the SEC’s potential approval of Bitcoin ETFs, a factor that could further influence market stability in the future.
It is not unlikely to see such volatility levels in the coming days or weeks, so caution is advised for those trading in the markets.
