The cryptocurrency Monero (XMR) has set a new all-time high, approaching the $600 mark. During the peak surge, the price ranged from $596 to $598, and at the time of writing, XMR is trading at $578.6.
This is reported by Finway
Monero’s Rise Amid Events in Zcash and the Market
A significant jump in the price of Monero occurred against the backdrop of a split among the developers of the Zcash project, as well as an overall improvement in the cryptocurrency market. Trading volumes for XMR have increased by 243.6% over the past day, and market capitalization has risen by 18.7%.
The community believes that the key factor behind this growth is the uncertainty surrounding Zcash. It is worth noting that Zcash developers and Zatoshi left the Electric Coin Company due to disagreements with management and have already announced their own new project. Both coins—Monero and Zcash—belong to the category of privacy cryptocurrencies and hold leading positions in market capitalization within this segment.
At the same time, the price of Zcash (ZEC) has decreased by 20% over the week, and trading volume and capitalization have significantly contracted. This indicates a substantial outflow of liquidity from Zcash to Monero, which is seen as its main competitor.
Macroeconomic Factors and the Impact of Fed Statements
Another factor contributing to increased volatility in the market has been the new escalation of conflict between U.S. President Donald Trump and Federal Reserve Chairman Jerome Powell. Powell’s statement regarding pressure from the administration and the U.S. Department of Justice has raised doubts about the independence of the Fed and its monetary policy, provoking an additional outflow of capital from traditional financial instruments toward alternative assets, particularly privacy cryptocurrencies.
“These price fluctuations compellingly indicate that Powell’s statement about the independence of the Fed being under threat has raised concerns among investors regarding the traditional financial system based on the dollar. Once the public sufficiently believes that this is no longer the case, investors will begin to seek hedging means away from the traditional system, and gold and Bitcoin serve as such means,” stated Peter Chang, head of the research department at Presto Research, in a comment to The Block.
Such macroeconomic factors often lead to heightened volatility, resulting in significant price changes for crypto assets over a short period.
