Cryptocurrency traders and investors were startled by a fake announcement of a spot Bitcoin ETF approval from the official Twitter account of the U.S. Securities and Exchange Commission (SEC). This misinformation led to a shift in trading dynamics between Bitcoin (BTC) and certain altcoins, as observed in on-chain data.
According to data compiled by on-chain analytics platform Santiment, the revelation that the spot Bitcoin ETF announcement was fake coincided with a price increase in five specific altcoins.
Following the fake ETF announcement, Bitcoin’s price surged to $47,900 before retracting to $45,500. This volatility shook the market, resulting in over $140 million in liquidations within a few hours.
Despite Bitcoin’s price volatility and downward trend, certain altcoins, including Ethereum (ETH), HEX (HEX), Aave (AAVE), Lido DAO (LDO), and Pepe (PEPE), did not fall but instead saw their prices rise. This decoupling of altcoin prices from Bitcoin’s is a rare occurrence, indicating a potential shift in market dynamics.
While Ethereum, the second-largest cryptocurrency by market value, saw a 3.35% increase over 24 hours, Lido DAO experienced an impressive 19% price surge. The future impact of an official spot ETF approval on these altcoins remains uncertain, but the excitement among investors is palpable, as historical data suggests that Bitcoin bull runs can trigger capital inflows into altcoins.