The Monero market has gone through a significant shakeup over the past 24 hours. Whereas the price trend looked quite strong yesterday, things have taken a sharp turn for the worse over the past few hours. It appears US$14 per XMR was possible late last night, but the more likely scenario right now is to hit US$12. Moreover, the Monero market cap took a significant hit as well, wiping close to US$26m off the value in one day.
Monero Falls Victim To Market Volatility
It is not entirely surprising to see Monero give in to the whims of volatility right now. Cryptocurrency as a whole is going through a very volatile patch, affecting Bitcoin and all other alternative currencies as a result. Monero is no different in this regard, as its market value dropped spectacularly over the past 24 hours. A decline of 12.82% overnight will see more money flowing out of the market in the coming hours; that much is certain.
Things look rather bad for Monero in the USD market right now. Even though that market’s volume is a lot smaller compared to Bitcoin trading, it still dipped significantly. At the same time, Bitcoin’s USD value is tumbling at an alarming pace as well, which affects all other currencies linked to it. Contrary to what some people may tell others, all altcoins are related to Bitcoin’s USD value.
To put this into perspective, the XMR/BTC market remained virtually unchanged. The small 3.2% dip is nothing specific to worry about, as that occurs on a regular basis. But when Bitcoin loses the value of its own in the fiat currency market, things go south quickly for all other cryptocurrencies in existence. Stronger altcoins will forge their own path across the fiat currency markets, though, and Monero can quickly turn this ship around over the coming months.
That said, the decline in market cap is never a good trend for any altcoin. This does not mean XMR has become worthless all of a sudden, but it will take quite some time to recover from such a massive blow. Recovering over US$20m in total valuation will take quite a bit of time, especially now that Bitcoin is losing value on a nearly daily basis. If Monero wants to decouple itself from Bitcoin regarding valuation, now would be a good time to try and gain more traction in the USD and EUR markets.
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