Why Monero, Bitcoin Cash, and Stellar Lumens All Plunged Today

What happened

Today, investors in Monero (CRYPTO: XMR), Bitcoin Cash (CRYPTO: BCH), and Stellar Lumens (CRYPTO: XLM) were all down substantially, since Friday’s close. As of 3:30 p.m. ET, these tokens saw declines of 12.4%, 15%, and 16.9%, respectively.

Each of these tokens was down more than 17% since Friday’s close, at today’s lows.

On Friday night, a crypto crash, which extended into early Saturday morning, wiped off approximately $570 billion of market capitalization off of the entire crypto sector in one day.

Image source: Getty Images.

So what

Monero, Bitcoin Cash, and Stellar Lumens are all top-50 cryptocurrencies by market capitalization. Accordingly, investors looking at the broader crypto market sell-off may not be surprised to learn that each of these cryptocurrencies was hit hard by the indiscriminate selling that took place this weekend.

Stellar Lumens and Bitcoin Cash appear to be trading in line with the broader market today. However, Monero looks to have a token-specific catalyst today investors are digesting.

Monero’s decline appears to be due, at least in part, to vulnerabilities found by the Monero team in this network’s multi-signature wallet code. Previous Monero wallet bugs have led to theft in the past. Accordingly, investors appear to be taking this news to heart today.

Now what

Sentiment in the crypto markets is far from bullish right now. Near-term headwinds appear to be factoring into investors’ decision-making more than we’ve seen in some time. Accordingly, these three top tokens may remain under pressure, at least in the near term.

That said, each of these tokens has seen volatility-driven routs in the past, followed by sharp recoveries. Whether such a recovery will materialize in short order or not is the question.

For now, it appears investors are taking a cautious approach to the crypto market today. Thus, now may be a good time to watch how everything plays out from the sidelines, at least until the dust settles.

10 stocks we like better than Monero
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Monero wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of November 10, 2021

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This news is republished from another source. You can check the original article here.

Be the first to comment

Leave a Reply

Your email address will not be published.


*