Bitcoin, Ethereum, Dogecoin Drop After Fake News Of Spot ETF Approval $200M Worth of Liquidations Follow: Analyst Warns Of Fakeout Rallies, Looming Corrections For King Crypto

Loading… Loading…

During Tuesdays trading session, major cryptocurrencies experienced significant fluctuations due to a false social media post by the Securities and Exchange Commission (SEC) regarding the approval of spot Bitcoin exchange-traded funds (ETF).CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EST)Bitcoin BTC/USD -1.34%$45,833Ethereum ETH/USD +2.90%$2,374Dogecoin DOGE/USD +0.24%$0.080

What Happened: Bitcoin reached a new 19-month high of $47,900 after the official SEC accounts tweet about the Bitcoin ETF approval. However, the excitement was short-lived as Bitcoin swiftly dropped almost 6.05% to a low of $45,000. It was later revealed that the SECs account had been compromised, and SEC Chair Gary Gensler denied the news.

In the past 24 hours, wild price fluctuations led to the liquidation of over $214 million in derivatives trading positions on crypto exchanges, according to CoinGlass data.

Liquidations occur when an exchange forcibly closes a traders open position using borrowed funds due to a loss of margin.

Top Gainer (24 Hour)CryptocurrencyGains +/-Price (Recorded 9:30 p.m. EDT)Helium HNT/USD +27.99%$6.80Bonk BONK/USD +27.89%$0.00001522Lido DAO LDO/USD +20.42%$3.74

The global cryptocurrency market cap now stands at $1.72 trillion, showing a spike of 5.29% in the past 24 hours.

The S&P 500 recovered from an earlier decline on Tuesday, primarily driven by gains in the tech sector, but still closed the day with slight losses. Additionally, the Nasdaq Composite rebounded from a nearly 0.9% slide and managed to secure a modest gain of 0.09%, ending the day at 14,857.71.

Looking ahead, investors will focus on two crucial inflation reports to gain insights into the potential future rate cuts by the Federal Reserve. The December consumer price index is scheduled for release on Thursday, followed by the producer price index on Friday.

See More: Best Cryptocurrency Scanners

Analyst Notes: Cryptocurrency analyst Michael Van de Poppe said that there is false information circulating regarding the approval of the Bitcoin ETF for the third time, supposedly stemming from a hack on the SEC account.Loading… Loading…

"Theory remains, upside relatively skewed, might reach $51K and then the rotation towards $ETH happens. Atleast $48K touched and Ethereum is taking of."

Well, we’ve got fake news on the #Bitcoin ETF approval for the third time.

This time an hack on the SEC account.

Theory remains, upside relatively skewed, might reach $51K and then the rotation towards $ETH happens.

Atleast $48K touched and Ethereum is taking of. pic.twitter.com/YTpdWXxvyo Michal van de Poppe (@CryptoMichNL) January 9, 2024

According to pseudonymous trader Capo, the potential approval of a spot Bitcoin ETF this week is expected to trigger a brief surge in the value of Bitcoin and other digital assets.

"Whales are showing strong interest in the $48,000-$50,000 level. News can trigger volatility and leave large wicks. So a pump to that level and a big rejection afterward is a likely scenario."

On-chain analyst Ali Martinez has noted that the TD Sequential is flashing a sell signal on the BTC weekly chart. Although not explicitly connecting the upcoming Bitcoin ETF decision to a sell the news event.TD Sequential is a technical analysis indicator used to identify potential price exhaustion and trend reversals.

While not directly linking the upcoming #Bitcoin ETF decision to a ‘sell the news’ event, it’s worth noting that the TD Sequential flashes a sell signal on the $BTC weekly chart.

This indicator forecasts a correction lasting one to four weeks before #BTC resumes its uptrend. pic.twitter.com/Cj6Zir4KOw Ali (@ali_charts) January 9, 2024

Photo by FellowNeko on Shutterstock

Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter UsersLoading… Loading…