Bitcoin News Update: Zcash's Privacy Boom Faces $76 Million Whale Short Position

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Bitcoin News Update: Zcash's Privacy Boom Faces $76 Million Whale Short Position

Bitget-RWA2025/11/01 08:20

By:Bitget-RWA

- Zcash (ZEC) faces a $76.5M short bet by whale "Abraxas Capital" amid a 400% price surge driven by institutional interest and privacy-focused adoption. - ZEC's shielded supply hit 4.94M coins (30% of total) as Grayscale's Zcash Trust and Orchard privacy protocols boost its appeal to anonymity-driven users. - Market polarization grows with Abraxas' $760M leveraged short positions contrasting "100% Win Rate" whale's $318M long reallocation, raising volatility risks. - ZEC's market cap jumped from #84 to #21

Zcash (ZEC) is undergoing significant changes in its market landscape as a prominent whale, known as "Abraxas Capital," intensifies its bearish stance by increasing its short position to $76.5 million, as detailed in a

Lookonchain analysis

. This development coincides with ZEC's remarkable rally, where the privacy-oriented digital asset has soared by more than 400% over the past month, fueled by renewed institutional participation and a heightened focus on privacy-driven tokens, as highlighted in a

Coinrise report

. The whale’s assertive short-selling approach underscores the escalating clash between bullish momentum and bearish bets, especially as ZEC’s shielded coin supply has reached 4.5 million, accounting for 30% of the total, according to a

TradingView analysis

This whale’s moves are part of a larger strategy targeting leading cryptocurrencies. Abraxas Capital, utilizing two wallet addresses, has steadily increased its short exposure to

Bitcoin

Ethereum

, and

Solana

throughout the last week, with

ZEC

shorts climbing to $76.5 million as of October 30, per Lookonchain. This follows a trend of building leverage at local price peaks, with the whale’s total assets swelling from $480 million to $760 million within three days. This stands in stark contrast to the so-called "100% Win Rate" whale, who has consistently succeeded with long positions in BTC, ETH, and SOL, recently shifting $318 million back into longs after a brief period of shorting, according to Lookonchain.

ZEC’s impressive gains have been supported by several factors, such as the introduction of Grayscale’s

Zcash

Trust, which has attracted $85 million in investments, and the implementation of advanced privacy features like Orchard, now responsible for most shielded transactions—a trend observed on TradingView. The network’s shielded supply, reflecting coins held in privacy-protecting addresses, has climbed to 4.94 million ZEC, further appealing to users who value anonymity, as mentioned in a

Yahoo Finance report

. At the same time, Zcash’s market cap has leaped from 84th to 21st place, overtaking competitors such as Monero and

Shiba Inu

, based on another

Yahoo Finance article

. BitMEX co-founder Arthur Hayes has further fueled optimism, forecasting that ZEC could reach $10,000 during the expected 2025 altcoin season, as reported in a

CoinEdition article

Nevertheless, some warn that the whale’s aggressive shorting could heighten volatility, especially as ZEC’s futures open interest has reached a record $529 million, a point also raised by CoinEdition.

The current divide in the market mirrors broader trends in the crypto space. While privacy supporters applaud ZEC’s resurgence, the heavy shorting by players like Abraxas Capital highlights the ecosystem’s vulnerability to leveraged trades. Hyperliquid’s involvement as a platform for these large-scale positions is also being examined, with the exchange seeing $8.53 million in BTC-USD liquidations in just 24 hours, illustrating the dangers of concentrated leverage, according to a

Coinotag analysis

As ZEC navigates this turbulent environment, the balance between institutional backing and speculative activity will likely shape its future. With privacy themes gaining momentum and Zcash’s technology advancing, the coin’s resilience against bearish forces may depend on its ability to harmonize innovation with market steadiness.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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