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.
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.
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