Crypto News Today: The SEC, X (formerly Twitter) and BTC-Spot ETFs Approvals

Key Insights:

• BTC struck a Tuesday high of $48,037 before ending the session down 1.76%.
• The SEC and posts on X (formerly Twitter) impacted buyer demand for BTC and altcoins.
• On Wednesday, the markets will focus on BTC-spot ETF-related news.

Bitcoin-Spot ETF: SEC X Account Compromised

Bitcoin (BTC) declined by 1.76% on Tuesday, ending the session at $46,189. Significantly, BTC hit a session high of $48,037 before briefly falling below the $46,000 handle.

Progress toward the SEC approval of BTC-spot ETFs drove buyer demand for BTC and altcoins. On Tuesday, investors reacted to a post on the SEC’s X account. The post announced the approval of BTC-spot ETFs. However, the SEC and SEC Chair Gary Gensler announced shortly after that it was an unauthorized post. SEC Chair Gary Gensler posted,

“The SEC twitter account was compromised, and an unauthorized tweet was posted. The SEC has not approved the listing and trading of spot bitcoin exchange-traded products.”

Investors reacted to the post, leading to a BTC fall to a session low of $45,017 before steadying.

US lawmakers and the crypto community shared their views on the unauthorized post and its impact on the crypto market.

Senator Cynthia Lummis said,

“Fraudulent announcements, like the one that was made on the SEC’s social media, can manipulate markets. We need transparency on what happened.”

Republican Senator Bill Hagerty responded to the SEC Chair update, saying,

“Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened. This is unacceptable.”

There were no posts on X from Senator Elizabeth Warren.

Despite the claims of an unauthorized post, the markets speculated whether the post was from within the SEC.

Bloomberg Intelligence ETF analyst Eric Balchunas polled X users, asking users where they thought the tweet came from. 83.3% of 12,164 votes believed the tweet came from within the SEC.

Nonetheless, the January 5 – 8 approval window for the first batch of BTC-spot ETFs remains open.

SEC Approval of BTC-Spot ETFs Imminent?

The market consensus is the SEC prepared the planned tweet but put the wrong date. Bloomberg Intelligence ETF Analyst James Seyffart shared his views on the tweet, saying,

“Lot of questions on timing. I don’t *THINK* that false positive approval tweet changes anything and I have to just assume the timing is still the same: We’re still expecting potential approvals tomorrow and for potential trading to begin Thursday.”

While the SEC tweet garnered investor attention, the focus will be on the SEC announcement on Wednesday. Approval of the first batch of BTC-spot ETFs would be a boon for BTC and the broader crypto market.

Technical Analysis

Bitcoin Analysis

BTC sat well above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC breakout from the Tuesday high of $48,037 would support a break above the $48,178 resistance level to target $50,000.

On Wednesday, the market focus is on the SEC and BTC-spot ETFs.

However, a fall through the $45,000 handle would bring the $44,690 support level into play.

The 14-Daily RSI reading, 61.34, indicates a BTC break above the $48,178 resistance level before entering overbought territory.

Ethereum Analysis

ETH remained above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH break above the Wednesday morning high of $2,412 would support a move to the $2,457 resistance level.

However, a fall through the $2,300 support level would give the bears a run at the 50-day EMA.

The 14-period Daily RSI at 57.37 indicates an ETH break above the $2,457 resistance level before entering overbought territory.