Monero (XMR) Surges Amid Suspected Bitcoin Exploit—Privacy Coins Back in Vogue
Privacy-focused Monero (XMR) rockets upward as traders flee to opacity after a suspected Bitcoin (BTC) exploit—because nothing says ’safe haven’ like a coin beloved by hackers and tax evaders.
Subheader: Laundering Fears Fuel XMR Rally
While Bitcoin stumbles over another potential security flaw, Monero’s untraceable ledger suddenly looks like a feature, not a bug. Traders pile in, proving once again that crypto’s moral compass points squarely at profits.
Closing jab: Who needs KYC when you’ve got a blockchain that winks at you and asks no questions?
XMR was among the most overbought assets after the recent unusual price spike. | Source: CoinGlass
The XMR asset has been largely forgotten since the last bull cycle, mostly due to being excluded from centralized markets. The new rally revived expectations of revisiting four-digit prices and lining up among blue chip crypto coins, as during previous bull markets.
The rally is highly unusual, happening at a time of extremely low sentiment for altcoins. Other coins and tokens from previous bull markets are still hovering NEAR their lower range. The altcoin season index sank even lower to 16 points, with XMR being the big exception.
Did a hack cause the XMR rally?
According to on-chain investigator ZachXBT, the recent XMR rally follows an exploit that transferred 3,520 BTC out of a single wallet.
Nine hours ago a suspicious transfer was made from a potential victim for 3520 BTC ($330.7M)
Theft address
bc1qcrypchnrdx87jnal5e5m849fw460t4gk7vz55g
Shortly after the funds began to be laundered via 6+ instant exchanges and was swapped for XMR causing the XMR price to spike…
— ZachXBT (@zachxbt) April 28, 2025
The hacker moved the BTC within hours to several addresses, including the most easily available exchanges. Some of the transfers of 10 BTC were sent to the KuCoin hot wallet, one of the few exchanges with a lively XMR market.
In a bid to hide the funds, the attacker used exchanges with a Monero market, which could anonymize the funds after withdrawal. The rapid selling by the suspected hacker also reversed the rally at its peak above $300.
Most centralized exchanges hold minimal XMR reserves after years of a highly inactive market. Reportedly, the trader used up all of Kraken’s reserves, while also tapping several other small markets.
The XMR rally lost its liquidity at around $300, making it extremely risky for late entrants. Despite this, derivative trading for XMR picked up, with open interest rising to over $31M. The unexpected rally caused short liquidations, and traders fluctuated between short and long positions.
Monero can return as a regulation-compatible asset
The alternative explanation for the recent rally is the possibility of XMR to return as a regulated asset, compatible with major exchanges.
One of the expectations is that the Monero network can implement a long-awaited upgrade, the EP-159. This would allow XMR to perform as a trackable asset, exposing selected wallets.
According to the Monero community, the upgrade has passed all tests and may be implemented on the main net soon. However, the time frame of bringing back XMR may be longer, and the asset may remain an anonymous coin with niche uses.
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