Is the fake Bitcoin ETF approval good for crypto?

The highly anticipated spot-Bitcoin exchange-traded fund (ETF) approval finally seemed to arrive on January 9. However, it turned out to be false hope for investors, as a tweet that announced it was deleted, and Security and Exchange Commission (SEC) chairman Gary Gensler said the SEC’s X profile was hacked.

The recent dissemination of inaccurate information has resulted in the liquidation of over $300 million in Bitcoin (BTC) markets. Despite the disappointment surrounding the disapproval of Blackrock’s ETF, it essentially marked the market bottom, per a post on X from crypto analytics platform Santiment on January 9.

Lessons from the previous event

Algorithmic trading has promptly induced volatility following the false post by the SEC. Whether this occurrence swiftly transforms into a ‘sell-the-news’ event or inadvertently shines a spotlight on cryptocurrency, potentially contributing to a minor bullish cycle once again.

Although not explicitly connecting the imminent Bitcoin ETF decision to a ‘sell-the-news’ scenario, it is noteworthy that the TD Sequential indicator signals a sell on the weekly Bitcoin chart. According to this indicator, a correction lasting one to four weeks is anticipated before BTC resumes its upward trend, per a post from crypto analyst Ali Martinez on January 9.

However, it is too early to tell whether the same pattern from the previous event will repeat itself and bring a bull cycle of flagship crypto.

Bitcoin price analysis

At the time of press, Bitcoin was trading at $45,608, marking a -2.13% decrease on the daily chart, contrary to the gains of 1.27% and 8.25% made on the weekly and monthly chart, respectively.

It is worth noting that the spike between the fake announcement and the release of hack information has marked a turbulence of over $2,000 in the BTC price, or almost 5% of the total price at the time.

Whether this fake news event will send the maiden crypto into the bullish cycle or the consolidation phase remains to be seen.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.