ZEC surges 6% against the trend while the broader market weakens—why is it “eating meat”?
Recently the broader market has been sluggish, and macro funds have continued to flow out. Oil prices have pushed up to 105, rate-hike expectations have risen to over 90%, and a regulatory bill was rejected—together, this has led to liquidity being withdrawn from liquidity-style assets such as BTC and ETH. Spot ETFs have continued to see net outflows. Ethereum staking funds keep withdrawing, and the market has entered a risk-off mode.
By contrast, ZEC has carved out an independent move, with the price rising sharply. Grayscale spot ETFs became an important catalyst. After launching in late August, they opened the channel for institutional capital to enter. At the same time, the trading screen has played out a squeeze scenario: from the lows, ZEC has surged by more than 20 times, short positions have been heavily liquidated, and the squeeze spiral has driven the price higher and higher.
On-chain data shows that this round of ZEC’s rally is narrative-driven rather than fundamentals-driven. Transaction usage in practice has not increased in step with the price. Trading volume of more than 3 billion per day has become disconnected from real business demand.
In an environment where the BTC market has lost momentum, funds have shifted toward a niche narrative track and crowded into it collectively, creating this independent rally.
$ZEC $BTC $ETH
#Zcash HODLers vote in support of the NU7 upgrade
Recently the broader market has been sluggish, and macro funds have continued to flow out. Oil prices have pushed up to 105, rate-hike expectations have risen to over 90%, and a regulatory bill was rejected—together, this has led to liquidity being withdrawn from liquidity-style assets such as BTC and ETH. Spot ETFs have continued to see net outflows. Ethereum staking funds keep withdrawing, and the market has entered a risk-off mode.
By contrast, ZEC has carved out an independent move, with the price rising sharply. Grayscale spot ETFs became an important catalyst. After launching in late August, they opened the channel for institutional capital to enter. At the same time, the trading screen has played out a squeeze scenario: from the lows, ZEC has surged by more than 20 times, short positions have been heavily liquidated, and the squeeze spiral has driven the price higher and higher.
On-chain data shows that this round of ZEC’s rally is narrative-driven rather than fundamentals-driven. Transaction usage in practice has not increased in step with the price. Trading volume of more than 3 billion per day has become disconnected from real business demand.
In an environment where the BTC market has lost momentum, funds have shifted toward a niche narrative track and crowded into it collectively, creating this independent rally.
$ZEC $BTC $ETH
#Zcash HODLers vote in support of the NU7 upgrade