Bitcoin price action proves that today’s SEC decision will trigger selling

Matteo Greco, research analyst at publicly listed digital asset and fintech investment firm Fineqia International (CSE:FNQ) shared his view on the recent compromise of the SEC’s X bill, which falsely approved the approval of all mock Bitcoin ETFs in the US confirmed.

In a surprising twist, Bitcoin’s recent price action, initially thought to have been triggered by the SEC’s denial of approval of the mock Bitcoin ETF, is now being re-examined as a classic “sell the news” phenomenon, according to insights provided by Matteo Greco was shared. .

Classic “sell the news event”

Greco’s analysis challenges the common narrative surrounding the market movement. Contrary to the belief that the price drop was solely due to the SEC’s rejection, Greco points to a detailed timeline of events. At 21.11 UTC, the SEC’s official account tweeted about the approval of all Bitcoin Spot ETF filings, causing an immediate spike in BTC’s price from $46,700 to $48,000 in just four minutes. However, this rally was short-lived as the price quickly returned to $46,700.

The unexpected twist occurred at 21.26 UTC when Gary Gensler tweeted that the SEC’s account had been compromised, explaining that the approval was not legitimate. Despite the ensuing chaos, the price stabilized in the $45,500 to $46,000 range, currently trading at around $45,700 at the time of writing.

Greco’s thorough analysis suggests that the market move was a response to what was believed to be real news, resembling a classic “sell the news event.” This pattern, where traders buy in anticipation of a positive news event and then sell when the news is officially confirmed, is a familiar occurrence in the market.

Despite the confusion, the SEC’s deadline for approving or rejecting the BTC Spot ETFs remains scheduled for today. Analysts still have optimistic expectations and expect a positive outcome. If approved, trading could potentially begin as early as tomorrow, Thursday, January 11.

As the crypto community awaits the SEC’s final decision, the recent market swings serve as a reminder of the volatility inherent in the cryptocurrency space, where a single tweet can cause significant price movements. Investors and traders continue to navigate this dynamic landscape with heightened anticipation for the regulatory developments that shape the future of Bitcoin and the broader crypto market.

Matteo Greco’s unadulterated take on Bitcoin’s price action

“Yesterday, at 21.11 UTC, the official X account of the SEC confirmed the approval of all Bitcoin (BTC) Spot ETFs filings. However, after 15 minutes, at 21.26 UTC, Gary Gensler tweeted from his account that the “@ SECGov Twitter account was compromised, and an unauthorized tweet was posted”. Gensler explained that the SEC has not approved the listing and trading of spot bitcoin exchange-traded funds (ETFs).

“XSafety, the official X account that provides security updates, has confirmed that “@SECGov has been compromised, and a preliminary investigation has revealed that the compromise was not due to any breach of X’s systems”. Instead of which an unidentified individual gained control of a phone number associated with the “@SECGov account” through a third party. It was also confirmed that the account did not have two-factor authentication enabled when it was compromised.

“Many attributed the significant selloff to the fake news, with BTC’s price falling from nearly $48,000 to below $45,000 before recovering overnight and stabilizing in the $45,000 to $46,000 range.

However, a closer analysis of the price action reveals a different story. At 21.11 UTC, when the SEC’s tweet about the approval was posted, the BTC price was around $46,700. The price immediately rose, reaching $47,400 in one minute and reaching its highest point of around $48,000 just four minutes later at 22.15. At that level, BTC quickly fell back to $46,700 in just one minute, the same price recorded five minutes earlier, in accordance with the SEC’s announcement. From there, the price continued to fall, reaching a low of around $44,750 at 21.25 UTC, exactly one minute before Gary Gensler’s tweet. After the fake news was revealed, BTC price stabilized in the range between $45,500 and $46,000. At the time of writing, BTC is trading at around $45,700.

“The price action analysis confirms that yesterday’s market movement was a reaction to what was believed to be real news, leading to a classic “sell the news event.” This pattern is typical in the market, where participants buy in the days before a news event and then selling when the news is officially revealed.Despite the chaos, the SEC’s deadline for approving or rejecting the BTC Spot ETFs filings remains scheduled for today, and analysts’ expectations are still leaning towards a positive outcome. Trading could possibly begin as early as tomorrow, on Thursday, January 11.”