LONDON—The crypto market witnessed another surge on Monday as Bitcoin (BTC) soared past $94,000 while other market indices also turned green. However, the day’s most dramatic action involved privacy coin Monero (XMR), which saw an unbelievable price spike, as XRP dominated the major digital asset gains. Earlier on Monday, the CoinDesk 20 index, which reflects the performance of the largest cryptocurrencies, had increased by 2.2%, signaling positive price growth across the board.
Monero’s Explosive and Mysterious Move
Monero (XMR) was the outstanding gainer as it ignored all odds and increased heavily, unlike any asset in the market, which increased only mildly. The privacy-centric cryptocurrency skyrocketed over 40% at its peak to hit $371, a level not seen since May 2021. Monero did lose some of those gains, but as of this writing, it was still over $264, up 15% from where it traded 24 hours earlier.
The drastic price surge was accompanied by an equally dramatic spike in trading activity. Data showed Monero’s trading volumes surging from a seven-day rolling average of about $50 million to over $220 million within the past day. The catalyst for this unusual trading behavior appears to be linked to, perhaps, some nefarious activity. On-chain researcher ZachXBT reported what has been labeled as a suspicious transfer of 3,520 BTC, roughly valued at 330.7 million.
Per ZachXBT’s analysis posted on X, these funds were later exchanged for XMR. The large, sudden inflow of demand into Monero’s thinly traded market likely resulted in the sharp price increase. Monero runs on the CryptoNote protocol, which was specially created to render transactions unlinkable and untraceable. Unfortunately, this feature attracts individuals trying to conceal the movements of funds.
The XRP Surge Leads in ETF Speculation—
Following Monero’s bouts of volatility, which garnered headlines, XRP rode high and claimed the spot of gainer among the major cryptocurrencies. The price of XRP saw an increase of almost 7%, which can be linked to the positive sentiment surrounding the approval of XRP-related ETFs by ProShare. Investors seem to be preparing for the release of three futures-tracked XRP ETF products that are set to go live on April 30th. This regulatory approval allows investors new ways to access regulated XRP investment opportunities and price movements.
Other secondary altcoins also gained, which helped push the entire market upwards. The ADA token of Cardano also followed XRP’s surge by rising over 3%, while the BNB coin of BNB Chain gained 1%. Ether (ETH), the second-ranked cryptocurrency, stayed relatively steady during this timeframe, displaying a position of strength against the sideways movements of other assets.
Cautious Optimism Persists Amid Macro Factors—
Traders’ sentiment, even with this market movement, remains the same as the week prior, balancing near-term optimism with skepticism due to the ever-present macroeconomic headwinds. There are, however, some analysts who are suggesting a change in the market’s behavior. As disclosed by Jupiter Zheng, partner at Liquid Fund and Research, HashKey Capital, the market may be starting a decoupling from traditional markets.
“Bitcoin has remained above the $92,000 mark since the Trump administration eased tariff restrictions on the crypto industry,” Zheng said in a quote to CoinDesk over Telegram. “This soft policy approach is likely to push Bitcoin and other cryptocurrencies towards developing their own market, which is not so dependent on US equities, and allow much greater inflow and innovation into the industry.” This highlights how politically inspired motivations can affect the development of this market, indicating that although regulating it can further advance the trajectory of the crypto industry.
Transitional Traditional Finance Exhibit Contrasting Signals.
The positive outlook towards crypto assets was somewhat countered by the sluggish movements in traditional finance markets. In other verticals, an Asian regional equity index was up by 0.6%; however, US equities faced a decline of 0.6% on S&P 500 futures after four consecutive days of rallying.
Following its record-breaking run, gold has also declined and given up some of its recent gains. Major Asian indexes alongside Hong Kong’s Hang Seng were largely flat, which indicated subdued global risk appetite, a stark contrast to the cryptocurrencies. The day highlighted the relentless divergences between cryptocurrencies and the traditional macroeconomy in which they operate.
