DogeRumor Ripple: Cryptic Swings and Enigmatic Mascot Mysteries Unleash Crypto Frenzy

Amid the eager anticipation surrounding the awaited approval of a groundbreaking spot bitcoin ETF, Dogecoin underwent a notable 9% surge, triggered by a subsequently retracted social media rumor regarding the alleged demise of the token's mascot.

This tumultuous episode sparked dissatisfaction among crypto market observers, leading to an upsurge in liquidations. On Tuesday, Dogecoin (DOGE) demonstrated significant volatility, fueled by a social media rumor hinting at the passing of the beloved mascot associated with the meme coin. TraderAguila, a pseudonymous user formerly known as X on Twitter, shared a screenshot of a Telegram conversation in Japanese, asserting that Kabuso, the iconic dog linked to the cryptocurrency, had met its end.

#ClownShowAlert Name and Shame pic.twitter.com/R06YWw41KJ

— snailnews (@snailnews_) January 9, 2024

Shortly thereafter, TraderAguila deleted the post, shifted to private mode, and admitted to fabricating the screenshot. Eventually, the entire account was removed. Despite retracing most of its gains, DOGE settled around 8 cents, maintaining a level higher than the 7.7 cents before the dissemination of the false news.

This incident not only fueled criticism within the crypto community but also contributed to the negative perception of the asset class, emphasizing concerns about market manipulation and speculative tendencies. A prominent crypto market observer, Tree of Alpha, expressed dismay, remarking, 

"The charts people are painting while speculating over the death of an animal make me think we're either all going to hell or we're already there."

The charts people are painting while speculating over the death of an animal make me think we're either all going to hell or we're already there.

— Tree (@Tree_of_Alpha) January 9, 2024

The volatile period also frustrated DOGE traders, resulting in the liquidation of over $674,000 worth of leveraged derivatives trades within an hour, surpassing other crypto asset liquidations, including bitcoin, according to CoinGlass data.

Doge Drama: Rapid Dogecoin Liquidations Within an Hour, Unveiled by CoinGlass 

Small size but fuck you @TraderAguila pic.twitter.com/PMe8XKmb5p

— Firefin (@FirefinTrades) January 9, 2024

Originally conceived as a humorous cryptocurrency in 2013, Dogecoin has since amassed a massive global following, including notable figures like Elon Musk, and currently boasts a market capitalization exceeding $11 billion.

These developments unfolded against the backdrop of heightened attention in the crypto market, with regulatory approval pending for a sought-after spot bitcoin exchange-traded fund (ETF) in the U.S. This approval is deemed a pivotal moment for the industry's maturation. Notably, in October, bitcoin (BTC) experienced a brief spike due to a false tweet from the crypto-focused news outlet CoinTelegraph, inaccurately suggesting that regulators had approved asset manager BlackRock's application.

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