Why Dogecoin (DOGE) Is Moving

Dogecoin (CRYPTO: DOGE) traded higher by as much as 3% to the $0.061 level Monday morning before falling amid circulation of false rumors of the iShares Bitcoin Spot ETF receiving approval. BlackRock said the information is false, according to Fox Business journalist Eleanor Terrett. 

The company’s Bitcoin ETF application is still under review, BlackRock, which owns iShares, told Fox.

Additionally, CoinTelegraph apologized for a misleading tweet about the Blackrock Bitcoin ETF and is conducting an internal investigation. The publication Monday morning said they pledge to share the investigation’s results with the public, emphasizing their commitment to transparency.

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Why This Matters To Dogecoin

Dogecoin, like many other cryptocurrencies, tends to be correlated with Bitcoin. If there’s news or rumors about a significant development related to Bitcoin, such as the approval of an ETF, it often has a spillover effect on other cryptocurrencies, including Dogecoin.

Investors may perceive this news as a positive signal for the overall crypto market, leading them to buy into various coins, including Dogecoin.

False rumors about the approval of a Bitcoin ETF can stir up strong emotions and excitement among cryptocurrency investors. Some traders may rush to buy Dogecoin in anticipation of a potential bull run, driven by the belief that positive developments in the crypto space could attract more institutional and retail investors.

As seen Monday morning, this surge in demand can push Dogecoin’s price higher.

According to data from Benzinga Pro, Dogecoin is trading nearly flat at the $0.059-level Monday morning.