Several cryptocurrency exchanges have begun delisting Monero (XMR) as its privacy features have created arbitrage opportunities in parallel markets.
Notably, Monero is already the third most traded currency against Bitcoin (BTC) on Bisq, a popular peer-to-peer no-KYC platform. The “private by default” cryptocurrency has seen slight declines in trading volume against the US Dollar (USD) and Euro (EUR) on Bisq.
At the time of writing, the monero.boats “Street Price” index calculates the price of XMR at $156.75. The index indicates that the coin is trading more organically, like cash, as if it were being exchanged on the street.
The Street Price Index is calculated using the latest exchange rates between Bisq's base pairs, Monero and Bitcoin. XMR is currently at 0.00224374 BTC and is showing a consolidation pattern following selling pressure due to the Binance delisting.
Monero Price Analysis and Arbitrage
especially, Trading View According to the price index, Monero is trading at an average of $143.09 on major exchanges. XMR has shown strong momentum as it recovers from a drop to $101 following its Binance delisting and tests psychological support.
Prior to this, Monero’s exchange rate against the US dollar exceeded $165 and hit a year-to-date high of $174.36. Technical indicators are showing a bullish outlook as the leading privacy coin is trading above its 30-day exponential moving average (30-EMA). Moreover, the daily Relative Strength Index (RSI) is at 67.76, indicating steady growth and future prospects.
Monero is currently trading on the “street” at a 9.5% premium over its exchange-traded price, which could provide traders with arbitrage opportunities and help drive a price surge in the mainstream market.
However, it is important to understand that low volume markets like Bisq usually follow the prices of high volume markets during arbitrage trading.
What are arbitrage opportunities?
Arbitrage opportunities in trading arise when an asset trades at different prices in different markets. Traders can take advantage of this price difference by simultaneously buying the asset in the market where it is cheaper and selling it in the market where it is more expensive.
The main risk associated with arbitrage trading is that prices can fluctuate rapidly, potentially losing the opportunity to make a profit. Traders must also consider trading costs that can reduce potential profits.
In Monero's case, the 9.5% premium on the street market creates an arbitrage opportunity: traders can buy XMR on mainstream exchanges and then sell it on a parallel economy like Bisq, pocketing the difference.
However, you should be aware of the risks associated with trading in an unregulated market. Additionally, limited liquidity in the street markets means it can be difficult to execute large trades without affecting the price. Despite the risks, the price differential between the two markets is large, making it an attractive opportunity for traders willing to jump through hoops.
Disclaimer: The content of this site does not constitute investment advice. Investing is speculative and your capital is at risk when investing.
