Zcash Plummets 26%: Is the Privacy Coin Bull Run Over?

Zcash (ZEC), the popular privacy-focused cryptocurrency, has experienced a dramatic reversal of fortune, plummeting 26% in the past 24 hours to trade around $485. This sharp correction comes after the asset exploded well above $700 earlier this month, reaching its highest point since early 2018. The sudden decline has left investors questioning whether the impressive bull run that saw triple-digit percentage gains has finally concluded.

The crypto community on social media platform X has been buzzing with speculation about ZEC’s next move following this significant retreat. Traders and analysts are deeply divided on whether this represents a temporary pullback or the beginning of a more sustained downturn. The price action has triggered intense debate about whether investors should be selling their positions or viewing the dip as a buying opportunity.

Arthur Hayes, the co-founder and former CEO of BitMEX, has emerged as a central figure in the Zcash discussion. During the recent upward momentum, Hayes outlined some of the most optimistic price predictions for ZEC, including a target of $1,000 last week and previously setting an even more ambitious target of $10,000. Now, Hayes finds himself facing the critical question of whether to sell or hold through the current volatility.

The debate among analysts reveals sharply contrasting viewpoints. X user Degen Sing represents the bullish perspective, arguing that ZEC is not dumping but reloading, describing the price action as a textbook mid-trend pullback before continuation. According to this analysis, if Bitcoin can flip back to $110,000, ZEC could rip straight through the $750 resistance level. Conversely, user Hardy presents a more pessimistic forecast, warning that if ZEC fails to hold the $487 support level, it could plummet to $344 or even $235 – a level the price has already dipped below.

The stakes are particularly high for Hayes, whose investment fund Maelstrom has significant exposure to Zcash. The American investor recently revealed that the cryptocurrency has become the entity’s second-largest liquid holding, trailing only behind Bitcoin (BTC). This substantial institutional position adds weight to Hayes’ commentary and underscores the financial implications of ZEC’s price movements for major market participants.

Zcash’s recent decline is not occurring in isolation but aligns with a broader downtrend affecting the entire privacy coin sector. Monero (XMR) has declined 9% for the day and currently trades around $380, while Dash (DASH) has collapsed by 16%. The market capitalization of the entire privacy coin niche has slipped to approximately $27.6 billion, representing a substantial 34% decrease on a 24-hour scale. This sector-wide weakness suggests that ZEC’s correction may be part of a larger market rotation away from privacy-focused cryptocurrencies.