In a surprising turn of events, traders of XRP, the digital currency developed by Ripple, have reportedly suffered losses amounting to $7 million. This comes in the wake of rumors surrounding BlackRock, the world’s largest asset manager, and its alleged shift in focus from Bitcoin to XRP.
The rumors, which originated from dubious social media accounts, suggested that BlackRock was considering XRP as an alternative to Bitcoin. This news was widely circulated, causing significant price swings in the XRP market. Nevertheless, a significant number of individuals in the crypto community have cast doubt on these claims, dismissing them as misinformation.
This is false! Confirmed by BlackRock by me. Some whacko must have added using BlackRock executive name etc. Cmon man. pic.twitter.com/cDpnycYwjQ
— Eric Balchunas (@EricBalchunas) November 13, 2023
Despite the rumors, BlackRock is awaiting clearance from the SEC for its spot Bitcoin ETF application. The asset management firm has consistently affirmed its commitment to adhering to regulations.
XRP Value Took a Hit Due to BlackRock XRP ETF Rumor
The rumors have had a significant impact on the XRP market. The price of XRP experienced a sharp increase, only to plummet shortly after, causing substantial losses for futures traders. XRP currently trades at $0.6539 at the time of writing. The downturn was mainly caused by spot markets, implying that the application of high leverage could have inflated the prices.
The crypto community has warned that despite a small connection between BlackRock and XRP, the news of the world’s largest asset manager shifting focus from Bitcoin to XRP is fake.
Nonetheless, some users highlighted a connection between Ripple and BlackRock, pointing out that Robert Mitchnick, who is currently head of Digital Assets at BlackRock, previously served as the head of strategy and product marketing at Ripple Labs.
The incident serves as a reminder of the volatility and unpredictability of the crypto market, and the potential risks associated with trading based on unverified news. As the crypto market continues to evolve, traders and investors must exercise caution and make informed decisions.
In conclusion, while the rumors about BlackRock’s shift in crypto strategy have caused a stir in the market, they remain unverified. Traders and investors are advised to stay updated with reliable sources and avoid making decisions based on unconfirmed information.