The tweet stated the following: “India has officially adopted bitcoin as legal tender. The government has officially bought 500 BTC and is distributing them to all residents of the country”. Twitter quickly fixed the issue, and India regained control of the account.
While such hacks get a lot of publicity, they do not always have a material impact on crypto prices. It’s an important case for those traders who are willing to trade such news (which will inevitably appear in the future since hackers are always active and succeed from time to time) as the recent hack provides an opportunity to evaluate the response of Bitcoin’s price.
Taking a look at Bitcoin’s H1 chart, there is no unusual activity on December 12. The trading volume increased when Bitcoin managed to get above $50,000 after facing some resistance near this level. However, such an increase in trading volume is normal for a test of a psychologically important resistance level, even if a cryptocurrency has been moving back and forth near this level for some time.
On the daily chart, Bitcoin continues to move lower after an unsuccessful attempt to settle above the $50,000 level. The incident with PM Modi’s Twitter account failed to provide any support to the world’s leading cryptocurrency.
The cryptocurrency market has matured, and it looks that traders are not ready to react to all suspicious tweets. While such tricks may still work with lesser-known coins with low market cap and low liquidity, moving Bitcoin with a fake tweet has become almost impossible, which is good for Bitcoin’s future.
For a look at all of today’s economic events, check out our economic calendar.