Bitcoin Plunges After ‘Compromised’ SEC Twitter Account Tweets Fake ETF Approval

The price of Bitcoin swung wildly Tuesday afternoon after the United States Securities and Exchange Commission (SEC) tweeted that a long-awaited spot Bitcoin ETF had been approved—but then SEC Chair Gary Gensler tweeted that the account had actually been compromised and that no Bitcoin ETFs have actually been given the green light.

Bitcoin bounced from a price of about $46,600 to $47,680 in a matter of minutes Tuesday, marking what appears to be a two-year high for the leading cryptocurrency. However, the price quickly plunged to nearly $45,500 before rising back up near $46,000, but has now fallen below $45,500.

The SEC’s approval of spot Bitcoin exchange-traded funds (ETFs) is still expected this week, with Bloomberg analyst Eric Balchunas pegging an announcement for Wednesday afternoon and trading to begin Thursday.

But Tuesday’s false alarm sent a shockwave through the market, stoking excitement before broader sentiment pivoted into frustration and annoyance. Even with today’s dip, Bitcoin’s price is up 8% over the last 14 days, and 166% over the last year.

Curiously, Ethereum is actually rising amid the Bitcoin debacle. Ethereum popped and then plunged after the false Bitcoin ETF news was announced, but then has climbed further and neared a 24-hour high at $2,337. It’s up more than 3% over the last hour.