Key facts
- Zcash price fell over 21% to $360.35, breaking below key support levels.
- Hyperliquid unlocked 1.75 million HYPE tokens, valued at over $60.4 million.
- A significant short position on Zcash has persisted for over a month on the Hyperliquid exchange.
- Hyperliquid experienced a $4.9 million loss due to a Popcat trader, leading to a pause in Arbitrum deposits/withdrawals.
- Broader crypto markets are facing pressure ahead of U.S. inflation data.
Crypto markets are experiencing downward pressure as traders anticipate key U.S. inflation data. Zcash (ZEC) has seen a significant price drop, falling over 21% to $360.35 and breaking below a critical $440 support level, triggering over $6 million in long liquidations. This decline has shifted sentiment in the privacy coin sector, with short exposure increasing to over 45% and whale activity turning bearish.
Hyperliquid (HYPE) faced its own challenges with the unlock of 1.75 million tokens, valued at over $60.4 million, distributed to developers and contributors. While many recipients showed restraint, selling only about 23.4% of their tokens OTC, the token remains in a downtrend, trading within a falling wedge pattern. The exchange itself has encountered difficulties, including a temporary pause on Arbitrum-based deposits and withdrawals following a $4.9 million loss triggered by a Popcat trader. This incident, where a $3 million stablecoin investment led to $20 million in liquidated Popcat positions, resulted in Hyperliquid's market maker absorbing the losses, impacting demand for its native HYPE token.
Meanwhile, a large whale has maintained a persistent short position on Zcash for over a month, with unrealized losses narrowing from a peak of $20.19 million to $9.5 million. This same whale also holds a leveraged Ethereum short position that has generated profits. The Zcash short's notional value remains substantial at $28 million, highlighting a strong bearish conviction. The exchange's response to the Popcat incident, including delisting a Solana-based meme coin, has drawn criticism regarding its adherence to decentralized principles. Futures open interest for HYPE has declined significantly, reflecting reduced trader risk appetite.