A Roundup for Major Privacy Coins – No Spring Time for Monero, Dash & Zcash

Data & Research / 13.12.2019

Crypto exchanges across the globe are delisting privacy coins for legislative reasons, and this is having a downwards pressure on the asset class. For example, Estonia-based BitBay announced Monday that Monero (XMR) will no longer be tradeable from Feb. 19, 2020 for compliance reasons, while XMR/BTC price maintains bearish undertones, resembling a falling knife.

This is happening in parallel to the “Crypto Spring” where alt-coins across the board are seeing bullish price action. With Bitcoin dominance steadily declining 2.7% in the last 3 months and total daily volume remaining equal, it indicates that money is flowing from Bitcoin to altcoins.

However, it appears that very little, if any, of the money is flowing into privacy focused coins. Here are price charts of the 3 most recognized privacy coins, Monero, Dash and ZCash:

XMR/BTC

XMR/BTC is struggling to break above the resistance brought by the simple moving averages and descending channel

DASH/BTC

DASH/BTC is also struggling to break above the simple moving average resistance

ZEC/BTC

ZEC/BTC broke out only 7 days ago from its bearish market structure

It is clear that spring time has not arrived for privacy coins…yet. This is not to say that it never will, as ZEC/BTC is already starting to see bullish price action, but that it will arrive later.

Taking a step back, this regulatory rejection should not be seen as negative because it is the first time in history that such a value proposition (private transactions) has come to surface. Just as Bitcoin was initially rejected by national and supranational institutions, resistance proved futile because of its decentralized properties. Now, those in power started institutionalizing it.

In the same vein, this is the first time privacy centric coins enter into space under regulatory oversight. Many regulators have already stated that it is important to regulate fraud and money-laundering with private currencies, whereas others have stated that they should be completely outlawed.

This is an answer the market can only give in due course, but HODLers should not be worried, because privacy is a genuine use and the decentralized nature of these particular coins makes it very hard to shut down the ecosystem entirely.

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Patrick is a third culture kid born to Brazilian parents, who enjoys reading, writing and thinking. He believes we need to be relentlessly improving models for investing in good ideas and moving them from the lab to the market, which naturally draws him to the cryptocurrency and blockchain space.