Zcash (ZEC) came under heavy selling pressure on October 15, sliding roughly 15% over 24 hours and trading below $1,100 after a broader crypto retreat triggered by hotter-than-expected U.S. inflation. Its market capitalization fell to about $18.3–$18.5 billion, though the privacy asset remained among the ten largest cryptocurrencies, according to CoinGecko and Decrypt data.
The decline followed a “meteoric rise” that left Zcash up around 460% from its March lows. Luke Nolan, senior researcher at CoinShares, said the rally encouraged a build-up in leveraged positions, which amplified the downside when sentiment cooled. CoinGlass data showed $17.9 million in Zcash long liquidations over 24 hours, exceeding the $7.3 million in Hyperliquid liquidations.
Despite the double-digit loss, several analysts described the drawdown as an opportunity. X Finance Bull said he exited ZEC earlier at $1,500 because there had been almost no real correction since $500, but now sees a potential setup and is returning to the chart. Altcoin Sherpa called a slump to $1,000 or lower a “gift,” while Jesse Olson forecast a potential short-term decline toward $900 followed by a recovery to as high as $1,600.
Technical indicators offered a mixed picture. ZEC’s Relative Strength Index dropped to 30, signaling oversold conditions that could support a rebound. However, exchange netflow data pointed to persistent inflows, suggesting investors were moving coins from self-custody onto centralized platforms and increasing short-term selling pressure.
Broader privacy-sector concerns added to the volatility. Last week, Ethereum co-founder Vitalik Buterin and Ethereum Foundation researcher Justin Drake warned about a “bunker mode” scenario in which AI could break crypto encryption before quantum computers. OpenAI’s recent math progress intensified that debate. Ryan Zurrer of Dialectic said complex privacy protocols such as Zcash have the most to lose if core cryptographic primitives were rendered obsolete by AI-driven attacks. Zcash developers expect the network to be quantum-proofed and reasonably AI-proofed by January, a roadmap that Tim Sun of HashKey described as a key catalyst for the recent rally.
Some attention also turned to a proposed French law that would require reporting crypto holdings above €100,000. Although it generated backlash after a wave of robberies and kidnappings, CoinShares’ Nolan downplayed its role in the move, arguing the correction is simply a larger pullback after Zcash’s massive upswing.
Overall, the pullback highlights both the risks of leveraged momentum and the ongoing focus on privacy and encryption resilience in the crypto market.
