- A fake SEC filing related to BlackRock and XRP circulated over the weekend, initially boosting XRP prices before they tumbled when the filing was revealed to be bogus. This weighed on the broader altcoin market.
- Solana’s SOL token fell 12%, Avalanche’s AVAX dropped 10%, and Chainlink’s LINK declined 8% amid the volatility sparked by the fake filing. Bitcoin also pulled back around 2% on Saturday.
- Some analysts view the market decline as an overdue pullback following unsustainable gains last week driven by optimism about lower inflation. It remains uncertain if the rally will regain momentum or if further declines are ahead.
The cryptocurrency market pulled back over the weekend after a fake filing related to BlackRock and XRP circulated, weighing particularly on alternative coins. Bitcoin also declined modestly amid the volatility.
What Happened Over the Weekend
On Saturday, a fraudulent filing with the SEC began circulating that claimed BlackRock had created a trust to invest in XRP, the native token of the XRP ledger. The fake news initially boosted XRP prices, but they soon tumbled when it became clear the filing was bogus. The false rumors ended up dragging down the broader altcoin market.
Solana’s SOL token fell 12%, Avalanche’s AVAX dropped 10%, and Chainlink’s LINK declined 8%. Bitcoin also pulled back around 2% on Saturday.
Some analysts have warned that the strong gains in crypto prices last week left markets prone to a cooldown. The rally was largely driven by optimism stemming from lower U.S. inflation data, which boosted hopes the Fed may slow its aggressive rate hikes.
The market remains volatile amid uncertainty around interest rates and the economy. While the latest downturn was triggered by a fake filing, some analysts view it as an overdue pullback following last week’s unsustainable surge. The coming days and weeks will show whether the rally can regain momentum or if more declines are in store.