On average, the main altcoins have fallen by around 20%.
A privacy coin is rising while the world falls.
In a turbulent market turn resulting from the reactivation of the tariff war between the United States and China, Bitcoin fell about 8% in 24 hours. At some point, the crypto asset reached $104,000, although it quickly recovered ground to exceed $110,100 and remain on that line. Meanwhile, altcoins suffered more severe losses, with average drops of 20%. Among the exceptions, Zcash stood out with a 17% rise, weathering the storm of liquidations.
Bitcoin’s drop, although significant, did not break the bullish market structure, according to analysts. The consensus is that the key support level of the bull market is located at $100,000, so it continues to protect Bitcoin from below.
The quick recovery above $110,100 can also be interpreted as a sign of resilience. This rebound ability reinforces the perception of bitcoin’s unparalleled strength despite the pressures of liquidation in the markets.
Altcoins are less fortunate
Ethereum and BNB recorded drops of approximately 12%, while Solana lost 17% and Cardano plummeted close to 20%, all in 24 hours as of this writing.
Dogecoin was the most affected, with a drop of 23% in 24 hours, and Chainlink was not far behind, also with a drop of close to 20% in the same period.
On average, major altcoins suffered losses of 20%, doubling Bitcoin’s decline and evidencing greater vulnerability to massive liquidations.
In the midst of this panorama, Zcash stood out as a notable exception. While the market was dyed red, this privacy-focused cryptocurrency that allows for shielded transactions with zero-knowledge proofs (ZK proofs) registered a 17% increase in its price, going against the current. This does not mean that liquidations are the cause of its rise. Rather, Zcash traders are not caring about the general trend of the market.
In terms of price, Zcash has regained the spotlight lately, after going through years of irrelevance. Its price barely moved from May 2022 to August of this year.
On the other hand, its technical proposal is still more than current and is valued by defenders of financial privacy, such as Edward Snowden, for whom Zcash has an advantage: its network can hide sensitive financial information, while Bitcoin is pseudoanonymous.
Although the sell-offs have shaken the market, bitcoin’s recovery and Zcash’s performance offer mixed signals.
The next few days will be key to determine if the $100,000 support is maintained and if the altcoins manage to stabilize after the blow received. For the moment, bitcoin remains very far from that support.