Key facts
- Open interest in Zcash futures reached a record high in token terms.
- Traders have crowded into short positions on Zcash.
- Zcash price experienced a significant crash.
- Liquidations were small relative to the price decline.
Bearish sentiment towards the privacy token Zcash (ZEC) has reached unprecedented levels, with open interest in ZEC futures climbing to a record high in token terms. This surge in bearish bets occurred as the token's price experienced a significant crash. The liquidations observed during the price decline were relatively small compared to the overall drop, indicating that the crash was primarily driven by spot selling rather than a leveraged cascade. Traders have been actively positioning themselves on the short side, contributing to the record open interest.