Why Ethereum Classic (ETC) Spiked Higher Monday Morning

Ethereum Classic ETC/USD traded higher by as much as 4.9% to $15.72 Monday morning before pulling back amid circulation of false rumors of the iShares Bitcoin Spot ETF receiving approval. Per Fox, BlackRock has refuted the false information and clarified that their Bitcoin ETF application is still under review.

CoinTelegraph has also issued an apology for a misleading tweet concerning the Blackrock Bitcoin ETF. They are currently conducting an internal investigation and have committed to sharing the findings with the public.

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Why This Matters To Altcoins Like Ethereum Classic

False rumors about significant developments in the cryptocurrency space can create hype and bullish sentiment among investors and traders. This can lead to increased buying activity as people speculate on the potential positive impact such an ETF approval could have on the overall cryptocurrency market.

In general, when Bitcoin is seen in a positive light from a regulatory perspective, other cryptocurrencies like Ethereum Classic can also benefit from the increased enthusiasm.

Altcoins are often driven by speculative trading and tend to exhibit more significant price volatility than Bitcoin. When false rumors of significant events like ETF approvals circulate in the cryptocurrency market, traders may rush to invest in altcoins like Ethereum Classic in anticipation of price gains.

According to data from Benzinga Pro, Ethereum Classic is trading higher by 2% to $15.28 Monday morning.