Monero is once again taking advantage of what is happening to bitcoin right now, although it is very different from what we have come to expect over the past few days. With the bitcoin price taking a sharp nosedive due to a few Chinese exchanges halting BTC withdrawals – only on their .cn domains, though – the XMR value is going up once again. That being said, this may only be a temporary reprieve, as money will continue to pour into bitcoin while the price is low.
A Brief Pause For Monero
People who are holding Monero as part of their cryptocurrency portfolio will be rather pleased right now. Due to bitcoin’s price tanking, a bit of money is flowing to popular altcoins again. Monero sees a nice bump in the bitcoin price department, although its USD value is taking a big hit in the process. There is always a tradeoff to be made when riding the coattails of the most popular cryptocurrency in the world.
With one XMR valued at US$11.77 right now, one could argue Monero is still overpriced for what it brings to the table. The 6.57% decline in value over the past 24 hours indicates most people see Monero as an altcoin to make some quick profits, but not one they should for the long term. That is rather disappointing, as Monero offers some intriguing features that will become more popular as time progresses. Then again, one should never expect speculators and traders to show any type of rational behavior when it comes to profits and losses.
The only thing that can save Monero’s USD value right now is a recovery for bitcoin, or a pump in the XMR/BTC market. With trading volumes in the USD market still on the low end of the scale, it is doubtful any significant volume should be expected from this department. Then again, one never knows what the future may hold for altcoins and bitcoin over the coming days.
An XMR/BTC pump seems highly unlikely as well, for some reason. Albeit the value has gone up by 3.82% in the past 24 hours, there is a fair bit of resistance on the market. The 0.01255BTC value per XMR may be the peak for now unless some serious traders start coming into the picture. It is more likely those people will buy up some bitcoins while it is cheap, though, which will eventually result in an XMR dump on the BTC front.
Header image courtesy of Shutterstock