Sharp declines in altcoins led cryptocurrency markets lower on Monday, with the downturn picking up speed late in the afternoon following what turned out to be a fake corporate registration for the iShares XRP Trust.
XRP gave back the entirety of those gains after a BlackRock spokesperson denied any affiliation to the filing and currently is trading down 1.8% over the past 24 hours.
An already lower crypto market was shaken up further by the fake news. SOL, which was a leader of the altcoin rally by more than doubling in price in a month, tumbled to an 8% loss over the past 24 hours. LINK and AVAX plunged more than 10% and 13%, respectively. Cardano's (ADA), Polkadot's (DOT) and dogecoin (DOGE) were each lower by 5%-7%.
BTC also slumped to a session low, now off roughly 2% over the course of the day to around $36,500. ETH gave up earlier gains, now flat over the past 24 hours and holding above the key $2,000 level.
The CoinDesk Market Index (CMI), a basket of almost 200 crypto assets, was down more than 2%.
JPMorgan analysts last week warned in a report that the crypto rally – largely fueled by excitement about spot BTC ETF – seems "overdone" as investors were getting overly optimistic about the prospects of new capital entering the digital asset space.
IntoTheBlock head of research Lucas Outumuro said in a Friday report that the market showed signs of overheating in the near-term but strong on-chain activity suggested that the crypto winter is over.
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