full image - Repost: Monero is outperforming Bitcoin. What this mean for the bull/bear cycle... (from Reddit.com, Monero is outperforming Bitcoin. What this mean for the bull/bear cycle...)
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Monero has been outperforming Bitcoin since April 2024. This inversion in the XMRBTC cross pair is interesting in itself but there is more we can tell from it. Most cryptocurrencies remain in high correlation (if not more volitile) to Bitcoin. Monero seems to be bucking that trend. That in itself is pretty cool for Monero being a store of value but there is more than can be inferred by the history of this relationship. First, we will look at the key data point in the past that could be happening and then I will offer a possible explanation for this phenomenon.XMRBTC (top, with Ichimoku) - BTCUSD left - XMRUSD rightBitcoin Maxis will point out that over the last 2 years Bitcoin overall has outperformed Monero by 25%. That's not the point. It is not that Monero is a "better" long term investment. Bitcoin has far more bullish history. The point is that the last time Monero outperformed Bitcoin was through the whole 2022 bear cycle. The outperformance did not end until January of 2023 when the Bitcoin bull trend started.XMRBTC cross pairIf history is a guide then Monero outperformance, especially sustained over many months, is an indicator itself that a bearish cycle of Bitcoin is confirmed. It also could be argued that Monero could become the "flight to safety" during bear cycles. We only have one sure data point but are currently witnessing a second.How can Monero do this? The best possible explanation is the Dark Web. On-chain transaction on Bitcoin have become prohibitively expensive. The alternative of using Lightning network, by having to setup and join nodes, negates the privacy that the Dark Web runs on. Monero has over the last few years become more dominant to the point that now it is the only cryptocurrency used on many Dark Web sites, often exclusively. Monero is the clear winner in the privacy use case for cryptocurrency.Thank you for reading. I hope this has made people aware of this phenomenon I find important and potentially useful in your own strategic decisions. I sell no products, courses, nor signals but if you'd like to follow my analyses I publish on Tradingview:https://ift.tt/2DYhapl
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