Fake ETF Nudge Rattles Bitcoin Futures, Fuels

The crypto market experienced significant turbulence as a fabricated endorsement announcement from the SEC concerning a Spot Bitcoin ETF created ripples affecting both Bitcoin and Ethereum Open Interest (OI). Furthermore, this event induced a day of volatility for Bitcoin prices, subsequently causing a notable decline in Bitcoin Futures Open Interest (OI).

Nevertheless, as Bitcoin Open Interest experienced a decline, there was an extraordinary increase in Ethereum Futures Open Interest, suggesting a notable change in market sentiment.

There was some unexpected drama at the SEC recently. A post popped up on their official X handle, claiming they’d approved a Spot Bitcoin ETF. But it was a mistake! Bitcoin fans were buzzing. However, their hopes were squashed. The SEC’s boss, Gary Gensler, stepped in. He clarified there was no such approval. Turns out, someone had hacked their account.

Ethereum Surges Amidst Bitcoin ETF Decline

In the meantime, due to this development, the cryptocurrency community voiced significant discontent, alleging market manipulation by the U.S. SEC. Notably, based on CoinGlass data, the Open Interest in Bitcoin Futures dropped by 3.29% in the past 24 hours to 431.76K BTC or $19.69 billion, indicating the influence of misleading information on investor confidence.

On the other hand, Ethereum proved to be a strong competitor in the market, even though Bitcoin experienced a decline. Over the last day, Ethereum Futures Open Interest saw a remarkable increase of 12.08%, hitting 3.33 million ETH, or $8.05 billion. This surge was repeated on other platforms as well, with Bybit seeing an astounding 16.07% gain in Ethereum OI and Binance seeing a 10.39% increase.

However, The recent upheaval at the SEC was blamed by some experts for Wednesday’s decline in the cryptocurrency market. As of this writing, the trade volume increased slightly to $83.95 billion, but the global cryptocurrency market cap decreased by 1.14% to $1.71 trillion.

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