False SEC ETF Claim Causes Bitcoin (BTC) Market Cap to Drop by $50 Billion

Unexpectedly, Bitcoin (BTC) witnessed a $50 billion market cap loss due to false Spot Bitcoin ETF claims by the US Securities and Exchange Commission (SEC). The agency’s X account was hacked, leading to a misleading approval message for the investment product.

The false nature of the claim was exposed as the agency lost control of the account. Speculation suggests over $200 million in digital asset market prices decreased during the day. Meanwhile, anticipation remains for a genuine Spot Bitcoin ETF approval announcement today.

Bitcoin Experiences a Significant Drop Following a False Claim by the SEC

The digital asset market, anticipating a decision on multiple Spot Bitcoin ETF applications by the SEC, faced disappointment with a false reveal, negatively impacting Bitcoin’s market cap.

The misleading claims caused Bitcoin (BTC) to drop from $938 billion to $890 billion, as reported by CryptoSlate. Although the asset has rebounded to almost $900 billion, the false SEC claims contributed to the market turbulence.

Following the false announcement, Bitcoin surged to $48,000 but dropped to $45,000 upon clarification, contributing to a more than 1% overall decline in the digital asset market within 24 hours. Coinglass data reveals nearly $220 million liquidated, with bullish traders facing the majority of losses, over $134 million, while bearish traders lost $83.1 million.

Despite this setback, industry experts anticipate approvals for more than 11 issuers on Wednesday, with trading expected to commence as early as Thursday morning. The incident is not anticipated to impede the approval process.

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