US Regulator Briefly Sends Bitcoin Prices SoaringUS Regulator Briefly Sends Bitcoin Prices Soaring

The official X account of the US Securities and Exchange Commission posted something that sent bitcoin values skyrocketing. Due to widespread speculation that a new cryptocurrency product had been authorised, the price of bitcoin saw a sharp increase around 4 p.m. It reached a level not seen for more than 22 months. The thrill, however, was fleeting as the price decline quickly followed the spike. Later, uncertainty and a subsequent decline in the price of bitcoin resulted from the market regulator having to intervene and reject any approval of a new cryptocurrency product.

At the same time that the SEC wrote a tweet on its X account indicating that it might approve an ETF, the price of Bitcoin shot up to almost $48,000. Things quickly changed, though, when SEC Chairman Gary Gensler used his own X account to warn people that their government account had been hacked. He said that a “unauthorised tweet” had been sent out, which made it unclear whether bitcoin ETFs were allowed. The SEC later told a French news agency that the tweet about bitcoin ETFs wasn’t from the SEC or any of its employees, making it clear that it wasn’t authorised.

There has been a lot of market conjecture for weeks over the potential approval of a new product by the SEC. This product, an exchange-traded fund (ETF), is important because it would let investors track the performance of bitcoin using an index fund instead of having to possess the cryptocurrency outright.

A federal appeals court in Washington previously ruled that the SEC’s decision to reject Grayscale’s bitcoin ETF was unwarranted. This confirmation raised hopes that a fund of similar kind may soon be approved by the SEC. The Wall Street regulator is under pressure since they have until Wednesday to rule on the investment firm 21Shares’ proposal, which is the longest-pending application for a bitcoin ETF.

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