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The Monero charts are looking rather bleak compared to just a few days ago. XMR’s USD value has dropped by nearly 20% in the past 24 hours, and the market cap has shrunk to well below the US$200m mark. Considering how the Bitcoin price plummeted, one would expect Monero to gain some momentum, but nothing could be further from the truth.
Monero’s Slippery Slope
The past 24 hours have not been overly positive for any of the thousands of cryptocurrencies in existence. Monero has seen its USD value retrace by nearly 20% compared to yesterday, and it looks like there will be a lot more blood in the water before everything’s said and done. Whereas the currency traded at just over US$16 yesterday, it is currently valued at US$13.43. A sharp retrace, similar to the one Bitcoin is going through in the same period.
Although some altcoins attempt to position themselves as not linked to Bitcoin price movements, it is nearly impossible to separate oneself from BTC altogether. Monero’s chart is a near copy of the Bitcoin price chart over the past 24 hours, indicating investors regard all cryptocurrencies in nearly the same manner. If one goes in the red, so will the others, as far as fiat currency value is concerned.
This negative trend also has a significant impact on the Monero market cap, which is now well below US$200m. Even though mainstream traders say the cryptocurrency space represents a small market, there is a lot of money to be earned and lost. For Monero holders, the past 24 hours have been filled with losses, unless one exits the market at an opportune time. Now the XMR market cap is sitting around US$184m; anything can happen over the next few days.
Interestingly enough, it is the USD/XMR trading at Bitfinex which drives down the price. The largest losses were noted on that exchange – 22.05% – whereas Kraken – 20.13% – and Poloniex – 18.97% – saw slightly smaller retraces. In the end, all exchanges are trading XMR around the same price right now, though.
It is evident all cryptocurrency markets are affected by large-scale volatility right now. The coming days will prove to be challenging for any currency in the fiat currency markets. Monero is likely to make some gains against Bitcoin but may lose more ground against the US Dollar.
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