Monero's price surged by 19% on January 12 and climbed further on January 13, resulting in a 44% gain over five days. The cryptocurrency later gave back some of those gains. No clear catalyst for the rise has been identified, with no major protocol upgrades, exchange relistings, or regulatory changes reported.
Social media chatter about privacy coins and privacy technology has increased, but this does not constitute a catalyst. Monero's privacy features make it difficult to determine who is buying the asset.
The Dubai International Financial Center imposed new rules in early January that prohibit privacy coins for many purposes, though not an outright ban. This reflects ongoing regulatory skepticism. Kraken delisted Monero for clients in parts of Europe in 2024 due to regulatory changes, limiting access for mainstream investors and complicating matters for existing holders.
Monero's default privacy design enables private transactions but contributes to its investability issues. Financial regulators worldwide view privacy technology as a threat to oversight, keeping the asset at the edges of the crypto-financial system. Exchanges face pressure to avoid listing it.
The Motley Fool Stock Advisor analyst team identified 10 stocks for investors to buy now, and Monero was not among them. The team highlighted historical returns from stocks like Netflix and Nvidia when they were recommended. Stock Advisor's total average return is 958%, compared to 196% for the S&P 500.
For most long-term investors, avoiding Monero remains advisable due to regulatory restrictions. The time to buy and hold Monero may come, but for those not already owning it, now is likely not that time.