• Cryptocurrency markets face significant losses as a fake BlackRock XRP Trust filing creates turmoil.
• Ripple (XRP) and leading altcoins, including Solana, Avalanche, and Chainlink, experience notable declines.

Market Turmoil Strikes as Fake BlackRock XRP Trust Filing Surfaces

The cryptocurrency market witnessed a turbulent day as sharp declines swept across various altcoins, including Ripple (XRP), Solana, and Chainlink. The downward spiral gained momentum following the emergence of a counterfeit corporate registration for the iShares XRP Trust, which was initially mistaken for a legitimate filing by BlackRock.

Ripple’s Rollercoaster Ride

Ripple (XRP) briefly surged by as much as 10% in response to an apparent Delaware corporation registry document for the iShares XRP Trust, resembling legitimate filings made by BlackRock for bitcoin (BTC) and ether (ETH) exchange-traded funds (ETFs).

However, this brief euphoria was short-lived, as a BlackRock spokesperson swiftly disavowed any association with the filing. Consequently, Ripple (XRP) retraced its gains and currently trades down 1.8% over the past 24 hours.

Impact on Altcoins

The crypto market, already under pressure, was further rattled by this fake news. Solana (SOL), which had been a standout performer with a 100% price surge in just a month, suffered an 8% loss within the past 24 hours. Chainlink (LINK) and Avalanche (AVAX) plunged even deeper, with losses exceeding 10% and 13%, respectively. Other major altcoins like Cardano (ADA), Polkadot (DOT), and Dogecoin (DOGE) also recorded losses ranging from 5% to 7%.

Bitcoin and Ethereum

Bitcoin (BTC) wasn’t immune to the market turmoil, sliding to a session low and experiencing a 2% drop to around $36,500. Ethereum (ETH) gave up earlier gains, remaining flat over the past 24 hours but still holding above the crucial $2,000 level.

Market Sentiment

JPMorgan analysts had previously cautioned that the crypto rally appeared “overdone,” as investors grew overly optimistic about the prospects of new capital entering the digital asset space. Lucas Outumuro, Head of Research at IntoTheBlock, highlighted signs of near-term market overheating but suggested that strong on-chain activity indicated the end of the crypto winter.

In summary, the cryptocurrency market faced a sudden downturn driven by a fake BlackRock XRP Trust filing, impacting Ripple (XRP) and leading altcoins. This incident serves as a stark reminder of the market’s vulnerability to misinformation and its potential consequences for crypto assets.