Zcash Defies Market Downtrend as Founder Clashes with Bitcoin Maximalist Saylor

The cryptocurrency market remains in a cautious state, with Bitcoin trading just above $91,000 after a 2% dip and major altcoins like Ethereum (ETH), Solana (SOL), and Hyperliquid (HLG) tracking losses of 2.5%, 5.5%, and 8% respectively. The Crypto Fear and Greed Index sits at 25, a modest recovery from November's plunge near 10, but sentiment is still unsettled.

Against this backdrop, privacy-focused coin Zcash (ZEC) has emerged as a notable outlier. ZEC price regained footing above $375 on December 5, marking a roughly 10% 24-hour gain. This movement follows a heated public exchange between Zcash founder Eli Ben-Sasson and prominent Bitcoin advocate Michael Saylor, which reignited market interest in the token.

The dispute, which escalated on November 16, centers on the Bitcoin-maximalist stance led by figures like Saylor, which frames altcoins as securities vulnerable to manipulation. The debate was further fueled when Bitwise CEO Hunter Horsley argued on social media platform X that Bitcoin maximalists struggled to provide coherent criticisms of Zcash.

On December 5, Ben-Sasson shared details of his first discussion with Saylor, countering criticism of Zcash's design. He emphasized that privacy and regulatory compliance can coexist alongside shielded transactions. Ben-Sasson also addressed Saylor's warnings about too-rapid innovation, arguing that a decade of research is more than sufficient for activation. He concluded by noting his intention to raise the topic of quantum-resilience in future discussions.

Market data supports the renewed interest. CoinGlass data shows Zcash open interest rose 6%, mildly exceeding the 5% spot gains, indicating traders are backing spot purchases with healthy leverage in anticipation of further upside. The long/short ratio flipped above 1.0, confirming that fresh leverage positions were predominantly bullish on ZEC.

Technically, Zcash is forming a bullish pennant on the daily chart following a steep rally from sub-$100 levels in September. Analysts suggest the pattern points to a potential retest of the $730 territory, though the token must first reclaim the middle Bollinger Band near $501. On the downside, the bullish structure would fail only if the price closes below $272.