The price of Bitcoin saw significant volatility Wednesday after a hack of the SEC‘s Twitter account falsely claimed that Bitcoin ETFs had been approved. Bitcoin spiked nearly 10% to near $48,000 but swiftly plunged back down around $45,000 as the news was revealed to be fake.
Renowned cryptocurrency skeptic Peter Schiff weighed in on the situation, seeing the incident as a possible harbinger of things to come should the SEC actually approve a Bitcoin ETF. In a tweet, Schiff warned that the market’s outsized expectations for an approval could set traders up for disappointment if the event fails to spark the bull run that many anticipate.
Schiff suggested traders consider selling now rather than waiting for potential bad news. Given Bitcoin’s history of defying speculative forecasts, he said the approval may not translate to gains and could instead trigger profit-taking.
The volatile reaction to the Twitter hack points to an “overbought” scenario where hype has already priced in the approval, according to Schiff. His message stressed exercising caution due to unknown market dynamics heading into the highly anticipated regulatory decision.
As the SEC nears a final decision on a Bitcoin ETF, Schiff’s warning highlights risks for investors banking on an approval to extend the rally. The fund’s approval could represent a critical test for Bitcoin’s ability to sustain its upward momentum or confirm skeptics’ view that the market often disappoints lofty expectations. Bitcoin’s next price moves may indicate which scenario is borne out.
