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Crypto Week: SEC X Account Hack and $50,000 Target for Bitcoin

Bitcoin (BTC) has experienced a 3.3% increase in price, reaching $45,700 this week. On Tuesday, BTC reached its highest point since March 29, 2022, at $48,064, demonstrating growth of 8.8%.

The Securities and Exchange Commission (SEC) is expected to approve the first batch of spot Bitcoin exchange-traded funds (ETFs) on January 10, has been a key driver for BTC's recent movements. In anticipation of this decision, BTC saw a 6.7% rise to $47,100 on Monday. Subsequently, on Tuesday, the SEC's social media account on the X platforms was hacked, and a false message claiming the approval of spot Bitcoin ETFs was posted. This led to a temporary surge in BTC prices. However, once the SEC regained control and denied the approval, BTC experienced a 6.2% drop to $45,000.

Despite the temporary manipulation, the market response was quite reluctant. The faked approval news added 2.1% to BTC prices during a brief period, which was followed by a subsequent 6.2% drop after the SEC confuted the approval. Some analysts consider this hack as a sophisticated form of market manipulation to bring prices down, although this is far more complex manipulation that is quite rare for the market.

Meanwhile, investors demonstrate increased concerns over a potential drop of BTC prices. The ratio of put options to call options exceeded 1.0, indicating that investors are hedging downside risks.

Nevertheless, the approval of a spot Bitcoin ETF seems imminent. Applicants for first-party spot Bitcoin ETFs quickly made amendments to their applications on Tuesday, which signals that applications are on the final approval stage by the SEC. U.S. Securities and Exchange Commission Chair Gary Gensler warned investors that are looking to buy into crypto. "Crypto asset securities may be marketed as new opportunities but there are serious risks involved," he wrote on X on Tuesday. This support the idea of final developments in the approval process.

Technically, BTC appears to be in good standing. ProShares Bitcoin Strategy ETF (BITO) has experience capital inflows of $108 million during the last three weeks. After breaking and retesting the resistance at $45,000, the path to $50,000 is considered open for Bitcoin. The approval of spot Bitcoin ETFs by the SEC may further influence BTC's price dynamics.