On a day characterized by rapid market speculation and price fluctuations, both Bitcoin and Ethereum Classic witnessed transient surges on Monday. The cryptocurrency market reacted to unfounded rumors regarding the approval of BlackRock’s iShares Spot Bitcoin ETF application. Bitcoin’s price briefly spiked by 10% before settling at a 3% increase, reaching $28,000. Concurrently, Ethereum Classic (ETC/USD) experienced a brief surge of 4.9%, reaching $15.72.
These rumors, later debunked by BlackRock, underscored the market’s heightened anticipation for a US spot-Bitcoin ETF and the susceptibility of cryptocurrency markets to social media speculations. This episode also highlighted how such rumors can lead to increased buying activity and expectations of price gains in volatile altcoins, such as Ethereum Classic, due to the positive regulatory outlook for Bitcoin.
CoinTelegraph is currently conducting an internal investigation after acknowledging the dissemination of the misleading information through a tweet. As of Monday morning, Ethereum Classic was trading 2% higher at $15.28, according to data from Benzinga Pro.
The market’s response to these rumors also emphasized the potential impact of industry giants like BlackRock and Invesco in the cryptocurrency sphere. These firms have collectively submitted more than ten spot-Bitcoin ETF applications, leading analysts to anticipate higher approval probabilities this time.
Further boosting these expectations is Grayscale’s recent triumph against the SEC, which allowed the transformation of its $16.7 billion Bitcoin Trust (GBTC) into an ETF. This development is regarded as a positive step in the approval process for similar applications.
Teong Hng, CEO of the crypto investment firm Satori Research, described the rapid price fluctuations as “a good 30 minutes of fun and games,” highlighting the inherent unpredictability of the approval process.
