The SEC fake account drama caused significant volatility in the cryptocurrency market, with Bitcoin prices reaching a 19-month high of $47,900 before dropping back to $45,100. The hacked SEC Twitter account’s false news led to a sell-off as investors quickly reduced leverage and positions, anticipating the impact of the ETF on Bitcoin prices. Despite expectations of an ETF announcement between 16:00 and 17:00 ET on Wednesday, with the listing set for Thursday, the approval is still uncertain. The volatility drove up the RV (Realized Volatility). Still, it caused a slight fall in IV (Implied Volatility), as the ETF has already been traded for over a month, and many investors have bet on it, resulting in a high short-term IV.
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