False BlackRock XRP Trust filing cools market temporarily

Yamini003

The crypto market has cooled down due to the impact of the false BlackRock XRP Trust fund application.

On the evening of November 13, the Delaware Department of Corporations website released a registration document titled "iShares XRP Trust," containing detailed information matching BlackRock's documents, including the name and address of its registered agent. After this news was disclosed, XRP prices quickly surged by 10%.

However, shortly after the disclosure of the "iShares XRP Trust" registration document, the situation reversed, and BlackRock quickly clarified that it had not attempted to launch an XRP ETF. The circulating BlackRock XRP document "iShares XRP Trust" was fake and had no relation to the company.

After this confirmation, XRP gave back all its gains.

The false information further shook the cryptocurrency market, causing short-term declines in several altcoins:

- SOL, previously a leader in the altcoin rally, had risen over 100% in the past month but dropped 8% in the last 24 hours.
- LINK and AVAX fell over 10% and 13%, respectively.
- ADA, Polkadot (DOT), and DOGE declined by 5%-7%.
- The native token FTT of the bankrupt exchange FTX fell by about 3.5%, but it has risen by over 215% in the past month.

Regarding major cryptocurrencies:

- BTC fell to an intraday low, with a 1.7% decrease in the past 24 hours, reaching around $36,500.
- ETH gave back its earlier gains, staying flat in the past 24 hours and remaining above the key level of $2,000.

Despite the volatility, the fundamentals of the crypto market overall remain positive. Last week, analysts from JPMorgan warned that the crypto rally, primarily driven by expectations of the approval of a Bitcoin ETF, seemed somewhat "excessive" as investors were overly optimistic about the prospects of new capital entering the digital asset space. However, there are different opinions in the market, with Lucas Outumuro, Director of Research at IntoTheBlock, suggesting that despite short-term signs of overheating and volatility, the fundamentals overall remain positive, and strong on-chain activity indicates the end of the crypto winter.

According to data from CoinShares, traders have invested over $1 billion in Bitcoin in the past seven weeks (as shown in the chart below), suggesting that the recent rebound in the crypto market is different from occasional short-term rallies during the bear market. Looking at a slightly longer timeline, Bitcoin has seen a 37% increase in November. CoinShares analysts point out that Bitcoin Exchange-Traded Product (ETP) trading volume accounts for 19.5% of the total Bitcoin trading volume on reputable exchanges, a rare occurrence indicating that one reason for the recent crypto market rally may be the increased participation of ETP investors compared to 2020.

Fundamental factors for other cryptocurrencies are also improving:

- A recent survey by France's AMF showed that young investors in the country are becoming more interested in digital assets than stocks, with over 9% of French people already owning cryptocurrencies, and around 2.8% holding NFTs.

The release of the US Consumer Price Index (CPI) data before the opening of the US stock market on Tuesday is crucial. The Consumer Price Index is an important economic indicator that measures the changes in the price level of a basket of consumer goods and services, providing insights into inflation trends. This data is particularly important as it occurs one month before the next Federal Reserve interest rate-setting meeting, where decisions will be made about monetary policy. These decisions have a significant impact on market dynamics, especially against the backdrop of recent inflation concerns. However, at present, the market expects that the Federal Reserve is unlikely to further raise interest rates, stemming from recent economic indicators suggesting that inflation pressures may ease, which could have a significant impact on financial markets, including the cryptocurrency industry, as it may lead to a shift in investor sentiment and risk appetite.

In summary, from macroeconomic and technical factors, the cryptocurrency market may be awaiting a new round of recovery. Despite the short-term fluctuations in the crypto market due to the false BlackRock XRP Trust fund application, the current overall trend seems to be developing in a positive direction.

Ritu13

It seems that the bull market is still ongoing.

Iravan774

No market will stay in a high-temperature phase forever.

Iti9

Even if this incident doesn't cause it, there will be other factors to cool it down.

Kahn332

If the fundamentals are unaffected, that's a positive sign.