Bitcoin ETF approval rumors significantly impact market liquidity by driving speculative trading and volatility. False posts, like the SEC’s hacked X account in January 2024, caused Bitcoin’s price to spike to $48,000 before dropping below $45,000, with trading volumes surging (e.g., 2M Bitcoins traded daily in 2019-2021 vs. 500,000 in 2023). Investors should:  
Monitor News: Verify ETF updates via trusted sources (e.g., SEC filings).
Hedge Positions: Use options or futures to mitigate volatility.
Diversify: Balance crypto exposure with stable assets.
Stay Liquid: Hold cash to capitalize on price dips.