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A new analysis has revealed that the recent Bitcoin price crash was a reaction to what was believed to be genuine news of spot ETFs getting approved, resulting in a classic “sell the news event.”

The analysis, conducted by Matteo Greco, research analyst at Fineqia International, detailed that many initially attributed the significant sell-off in the Bitcoin market to fake news.

However, upon closer analysis of the price action, it is revealed that the price reached a minimum of about $44,750 “exactly one minute before Gary Gensler’s tweet.”

“At 21.11 UTC, when the SEC’s tweet about the approval was posted, the BTC price was around $46,700,” Greco said in the analysis shared with Cryptonews.com. 

“The price immediately spiked, reaching $47,400 in one minute and reaching its highest point of about $48,000 only four minutes later at 22.15.”

Shortly after, BTC quickly dropped back to $46,700 within one minute, the same price recorded five minutes before the SEC’s announcement, he added.  

From there, the price continued to decline, reaching a low of about $44,750 at 21:25 UTC, precisely one minute before Gary Gensler’s tweet.

Following the revelation of the fake news, BTC’s price stabilized in the range of $45,500 to $46,000. At the time of writing, BTC is trading at approximately $45,700.

The official SEC Twitter account, @SECGov, announced the approval of all Bitcoin (BTC) Spot ETF filings at 21:11 UTC yesterday. 

However, just 15 minutes later, at 21:26 UTC, SEC Chairman Gary Gensler tweeted from his own account, stating that the SEC’s Twitter account had been compromised, and the tweet was unauthorized. 

Gensler clarified that the SEC had not approved the listing and trading of spot bitcoin exchange-traded funds (ETFs).

The analysis of the price action confirms that yesterday’s market movement was a reaction to what was believed to be genuine news, resulting in a classic “sell the news event.” 

This pattern is common in the market, where participants buy leading up to a news event and then sell when the news becomes officially public. 

Bitcoin Price Moves, Bitcoin ETFs Not Yet Approved

The SEC is expected to finally approve a batch of ETFs late Wednesday.

Executives from some ETF issuers, speaking on condition of anonymity, told Reuters they were startled and surprised by the initial tweet.

One executive said he was “concerned” that the SEC might delay or withhold approval for spot Bitcoin ETFs as a result of the hack.

Two issuers, speaking on condition of anonymity, said it was not immediately clear whether the hack would impact the timeline for approvals of the spot bitcoin ETFs. 

Meanwhile, Bloomberg analysts are increasingly optimistic about the approval of a spot Bitcoin ETF in the United States, with the odds now exceeding 90%. 

In a recent post, Bloomberg ETF analyst Eric Balchunas commented on the likelihood of the SEC rejecting proposals following a flurry of updated filings. 

Balchunas stated that he would assign a mere 5% chance of rejection, leaving a small possibility open for such outcomes. 

The post Analyst Says Bitcoin Price Crashed Before Gensler’s Tweet: It “Was a Reaction to What was Believed to be Real News” appeared first on Cryptonews.