Elon Musk's X Confirms SEC Twitter Hack That Sent Bitcoin Soaring Was Caused By Lack Of Two-Factor Authentication
Portfolio Pulse from Mehab Qureshi
Elon Musk's Twitter confirmed that the SEC's Twitter account was compromised due to lack of two-factor authentication (2FA). An unauthorized tweet about Bitcoin ETFs caused a temporary spike in Bitcoin's price. Twitter, under Musk, has made 2FA a paid service via Twitter Blue since March 2023. The SEC has not approved Bitcoin ETFs, as clarified by SEC Chair Gary Gensler.
January 10, 2024 | 4:30 am
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NEUTRAL IMPACT
The unauthorized tweet from the SEC's hacked Twitter account led to a temporary surge in Bitcoin's price, demonstrating the cryptocurrency's sensitivity to regulatory news.
While the price of Bitcoin experienced volatility due to the hack, the market has already corrected after the clarification from the SEC. The short-term impact has likely dissipated, making the score neutral.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Twitter confirmed the SEC's account hack was due to a lack of 2FA, which is now a paid feature under Twitter Blue. This could raise concerns about platform security and monetization strategies.
The news directly involves Twitter's security measures and their decision to make 2FA a paid feature, which could negatively affect user trust and the company's reputation. This may lead to short-term negative sentiment among investors.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80