On Tuesday night, the official X account of the U.S. Securities and Alternate Fee (SEC) was hacked and posted an unauthorized message stating that regulators had permitted a Bitcoin exchange-traded fund (ETF).
The now-deleted tweet sparked a short rally in cryptocurrency markets earlier than the SEC clarified that the account had been compromised. Whereas the tweet was bogus, the knee-jerk response has offered perception into how cryptocurrencies could reply to future Bitcoin ETF approvals.
Effectively, we have pretend information on the #Bitcoin ETF approval for the third time.
This time an hack on the #SEC account.
Idea stays, upside comparatively skewed, may attain $51K after which the rotation in the direction of $ETH occurs.
Atleast $48K touched and Ethereum is taking of.#BTC pic.twitter.com/onHfZ0H3Kf
— Polaris (@ElifYolaz) January 10, 2024
Ethereum Value Spikes on Faux Bitcoin ETF Information
Particularly, the value of Ethereum surged on the pretend information. Ethereum volume spiked 73% to almost $22 billion as costs reached a peak of 9.3% intraday. The key enhance regardless of the tweet referencing Bitcoin means that an precise Bitcoin ETF approval might additionally act as a catalyst for Ethereum as merchants promoting the information rotate into ETH in anticipation of an Ethereum ETF approval.
“Everybody is anxious with what Bitcoin will do when the ETF will get permitted,” tweeted crypto analyst Scott Melker. “Yesterday’s madness gave us the street map… merchants will rotate into Ethereum. The market has spoken.”
If cryptocurrency costs can spike based mostly on a pretend tweet, one can solely think about the potential impression of actual information.
The long-awaited SEC decision on a Bitcoin ETF is predicted later in the present day. Whereas the regulatory company has rejected all proposals up to now, many consider prospects are enhancing for approval.
Simply based mostly on the charts it seems the ethereum ETF has been permitted
— Dyme (@CryptoParadyme) January 10, 2024
If permitted, a Bitcoin ETF would make the cryptocurrency more accessible to mainstream investors, boosting demand and having spillover results for different main cash like Ethereum.
Prague Improve Generates Optimism
Past the value actions sparked by Tuesday’s fake tweet, Ethereum has an upcoming community improve that would additionally impression costs.
The Ethereum blockchain is on the verge of the Dencun upgrade, an imminent technical enchancment to the platform. This improve has generated pleasure throughout the cryptocurrency neighborhood because it seeks to reinforce Ethereum’s performance, safety, and general capabilities.
Investors and analysts expect this improve to have a bullish impact on Ethereum’s value. The modifications might function a catalyst for an ETH value surge, propelling values larger.
Tuesday’s pretend tweet offered a small preview of what could also be on the horizon. The trade awaits the SEC’s announcement with bated breath. A constructive determination might unleash the following leg up for the nascent asset class. As merchants anticipate the Ethereum ETF approval, there could also be big upside for the cryptocurrency after Bitcoin’s ETF approval.