A single tweet succeeded in pushing the cryptocurrency market out of the abyss. An unconfirmed tweet about the US Treasury accusing several financial institutions of crypto money laundering has wreaked havoc on the cryptocurrency market.
As reported by the US, Bitcoin hit the $ 51,000 level and the top altcoins saw even harder losses.
The tweet that allegedly triggered the drop was posted by a suspicious Twitter account called FXHedge.
The Tweet was able to delete $ 288 billion from the cryptocurrency market within 54 minutes after touring on social media. While writing this article, the tweet received more than 4,700 likes, despite citing anonymous sources and disabling comments.
Jake Chervinsky, Compound Finance’s general adviser, writes that he did not find the tweet credible, as cases of money laundering fall under the scope of the US Department of Justice. Several financial institutions at the same time emphasize that this situation will be “unusual”.
Note that FXHedge has a history of making false claims in the past, which means that many of its content should not be taken seriously.
Cryptocurrency market fragility
The fact that a dubious tweet can delete hundreds of billions of people has exposed the vulnerability of the cryptocurrency market, which is highly susceptible to such rumors.
In early March, a fake ZeroHedge account went viral after posting a fake tweet about Apple breaking into Bitcoin.