Monero Surges 40% After Massive Bitcoin Hack Sparks Liquidity Frenzy
today / 09:53
On-chain researcher ZachXBT reported that Monero (XMR) experienced a 40% surge early Monday after approximately 3,520 bitcoin (BTC), valued at around $330.7 million, was hacked and swapped for XMR. Market data revealed a spike in volatility dominated by an excess of buy orders in the XMR-BTC order book, even as typical network metrics such as active wallets and overall activity did not reflect the surge. The limited liquidity in XMR trading—a consequence of major exchanges delisting the token to counter dark net activities—likely amplified the outsized price move. This development has raised concerns over market stability while highlighting the inherent risks associated with digital asset security and liquidity limitations in the crypto space.
Monero (XMR) surged by 40% due to a massive influx of buy orders driven by a hack incident where stolen BTC was swapped for XMR. In the short term, the low liquidity in XMR trading has amplified the price increase, making the surge potentially unstable and prone to high volatility. Long-term prospects may face downward pressure if regulatory scrutiny heightens or if market corrections occur, though increased investor interest in privacy coins might provide some support.
Bitcoin (BTC) was the source of funds for the hack, with a large theft contributing indirectly to the price dynamics observed in XMR. In the short term, if liquidation of stolen funds occurs, BTC could experience temporary selling pressure and volatility. However, given Bitcoin's historical resilience and status as a store of value, the long-term impact is likely to be muted, though the incident may prompt enhanced security concerns.
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Monero Surges 40% After Massive Bitcoin Hack Sparks Liquidity Frenzy
A major hack stealing 3,520 BTC and its conversion to XMR triggered an unusual surge amid limited liquidity in the privacy token.
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