Bitcoin (BTC) price fluctuates wildly as fake SEC post on Bitcoin ETF approval liquidates $50 million

Bitcoin (BTC) experienced wild swings during Tuesday's trading session as a social media post from the US Securities and Exchange Commission (SEC) about the approval of spot Bitcoin exchange-traded funds (ETF) turned out to be false and confused market participants.

BTC rose for the first time, up 2.5% to a new 19-month high of $47,900, immediately after the official SEC account

Then Bitcoin fell sharply by almost 6% to as low as $45,100 as it emerged that the SEC's account had been compromised and SEC Chairman Gary Gensler denied the news.

The wild price action liquidated over $50 million worth of derivatives trading positions on crypto exchanges within an hour, data from CoinGlass shows. Liquidations occur when an exchange forcibly closes a trader's open position with borrowed money due to a margin loss.

Recently, BTC was changing hands just below $46,000 at press time, down about 2% in the last 24 hours.

This was the second incident of the day where a false social media post caused massive volatility. Earlier on Tuesday, Dogecoin (DOGE) surged as much as 9% on an X post about the death of the token's mascot, then fell as the news turned out to be false.

Alex Krüger, co-founder of Asgard Markets, noted that today's events suggested that Bitcoin might not rise as much as bulls hope when real news of approval arrives.

“Fake ETF news showed that BTC upside potential is clearly limited until we see actual ETF inflows,” Krüger said in an X post. “Time for ETH to take power.”

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