Zcash Dives 16%, Falling Harder Than Bitcoin Amid Market Sell-Off

Sharp Sell-Off Ends Weeks of Gains

Privacy coin zcash (ZEC) dropped below $1,200 for the first time in weeks Thursday as the previously top-performing cryptocurrency surrendered all gains made since Sept. 16. Market data shows that the privacy coin, which traded above $1,330 late Wednesday, initially experienced a sharp drop just before midnight when it shed nearly $70 in just over an hour, dropping from $1,300 to $1,235.

After spending a few hours struggling to hold above $1,230, ZEC’s price eventually succumbed to bearish pressure, sliding further until it hit a recent low of $1,115. The privacy coin was still down about 16% on the day.

For context, bitcoin and other high-cap altcoins logged losses ranging between 3% and 7%, while rival privacy coin monero (XMR) was down about 4.5% on the day. Despite this, ZEC’s gains since the start of the year remain above 120%, making it one of the best-performing cryptocurrencies in 2026 so far.

ZEC’s slide caused the liquidation of about $38 million in leveraged long positions on the cryptocurrency. Overall, nearly $900 million worth of positions have been liquidated across the broader market in the last 24 hours.

Investor Sentiment and Shifting Privacy Thesis

While the price drop has shaken some investors, long-term supporters remain unfazed, pointing to recent patterns. Data shows ZEC bull runs regularly give way to periods of sustained pressure before rebounding to set new year-to-date highs.

In addition to technical signals, high-profile backing continues to bolster sentiment. Crypto investor and prominent Monero proponent “Tulip King” recently revealed on a podcast that ZEC’s outperformance forced him to re-evaluate his privacy thesis.

Pointing to ZEC’s relative price strength against Monero, he noted that market signals pushed him to revisit long-held assumptions and ultimately build a substantial position in ZEC while retaining respect for the Monero community.

Institutional tailwinds offer another cause for optimism. Winklevoss Asset Services, owned by Gemini co-founders Cameron and Tyler Winklevoss, submitted an S-1 filing with the U.S. Securities and Exchange Commission to launch a spot zcash ETF on Nasdaq under the ticker WINK. The fund, partnered with ecosystem backer Cypherpunk Technologies, proposes holding ZEC directly with a 0.25% fee—a move aimed at undercutting Grayscale’s existing Zcash fund.

Winklevoss Asset Services submitted a registration statement to the SEC for a spot zcash ETF under the ticker WINK on…