Zcash (ZEC) declined 21 percent from its recent high of $1,698, according to Decrypt. The pullback follows two separate events that pressured the privacy-focused cryptocurrency.
ETF outflows contributed to the selling pressure, the outlet reports. Additionally, a suspected North Korean heist routed money through Zcash's shielded pool, potentially damaging sentiment around the coin.
Despite the drop, traders are debating whether the rally has truly ended or if the decline represents a buying opportunity. The question hinges on whether the negative catalysts represent temporary headwinds or a structural shift in investor confidence.
Zcash's shielded pool allows users to conduct private transactions on the blockchain. The suspected North Korean heist using this feature underscores the tension between privacy infrastructure and law enforcement concerns. Criminal activity routed through privacy coins typically attracts regulatory scrutiny and can deter mainstream investors.
The combination of technical ETF selling and the security incident created dual downward pressure on ZEC prices. Whether institutional investors return to accumulate at lower levels depends partly on how markets interpret the security incident and whether additional outflows materialize from Zcash-linked funds.
Traders monitoring the coin are weighing these factors to determine whether ZEC has found a floor or faces further declines from current levels.