This Tweet Just Wiped $ 288 Billion From Crypto Market Cap

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Alex Dovbnya
A single tweet succeeded in pushing the cryptocurrency market beyond the abyss

A unconfirmed title About the US Treasury accusing several financial institutions of cryptocurrency money laundering has wreaked havoc on the cryptocurrency market.

As reported by U.Today, Bitcoin has risen to the $ 51,000 level, with top altcoins registering even bigger losses.

The headline that allegedly triggered the crash was posted by a dubious Twitter account called FXHedge.

The tweet succeeded in wiping $ 288 billion from the cryptocurrency market within 54 minutes of making the rounds on social media. At the time of writing, he has over 4,700 likes despite citing anonymous sources and disabling comments.

Image from tradingview.com

Jake Chervinsky, general counsel at Compound Finance, writes that he does not find the tweet credible since money laundering cases fall under the US Department of Justice. He also adds that it would be “unusual” to bill several financial institutions at the same time:

I do not find this credible. The tweet itself is fishy: The Treasury doesn’t charge for money laundering (the DOJ does) and a complaint against multiple FIs at once would be unusual. In addition, criminal investigations are strictly confidential and rarely leaked. I am not convinced by anonymous “sources”.

It should be noted that FXHedge has made false claims in the past, which means that its contents should be taken with more than a pinch of salt.

The fragility of crypto

The fact that a shady tweet can wipe out hundreds of billions of dollars has revealed the fragility of the crypto market, which remains highly susceptible to such rumors.

Twitter users could militarize their substantial customer base in order to displace the market with misinformation. In early March, a fake ZeroHedge account went viral after posting a faux tweet about Apple getting into Bitcoin.

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