Citing CriptoQuant analysis, the outsider argued that Zcash ' s recent rapid pull-up might not be a single-single currency, but rather a prelude to bitcoin ' s return pressure. It was reported that when bitcoin maintains inter-zone shocks, ZECs, such as the private currency, were exceptionally strong and had appeared on several occasions before the broader market adjustment.

ZEC's up by about 70% a day.

According to the report, the analyst Maartun argued that ZEC had risen by about 70 per cent in just a few days, a trend that made him more cautious than the post-TTcoon city, rather than simply looking at more Zcash. At the time of the current round, bitcoin was still hovering between 60,000 and 80,000 United States dollars, failing to continue the pre-high-level break.

CriptoQuant ' s associated risk indicators have also entered extreme areas. According to the Agency, such signals had appeared on several occasions in history before Bitcoin ' s sharp fall, and were therefore considered to be market movements requiring vigilance.

The derivatives market is overheated.

The CoinGlass data shows that ZEC's trade-off of spot and derivatives has fallen significantly over the past 24 hours:

  • Cash trade declined by about 24.97 per cent.
  • Derivatives dropped by about 24.16%.
  • The increase in futures pallet in the four-hour cycle was 101.68 per cent.

It was also reported that some $15.3 billion of borrowed funds remained in the Zcash bond position, representing more than 11 per cent of its $13.133 billion market value. If prices continue to fluctuate, this part of the high-leverage position may magnify the market adjustment.

The market still questions long narratives.

Alex Thorn, research director of Galaxy Digital, also questioned the increase. In his view, ZEC had been used by the market as a “private bitcoin”, but its ecology did not show strong long-term demand.

It was also mentioned that Thorn believed that the model account block chain was birthrightly inadequate at the privacy level, and that bitcoin-based UTXO-based chains were more advantageous in their relevant characteristics. ZEC, in combination with the return of exchange and the high level of leverage, suggests that the ZEC surge is more like a short-term risk preference for concentrated release than a clear improvement in the basics.