Zcash Liquidation Imbalance Jumps 1,374% in 12 Hours, ZEC Price Reacts

Privacy coin Zcash (ZEC) is attracting attention from market participants as ZEC registered a 1,374% in liquidation imbalance within the last 12 hours. This development has dampened the mood of bulls, who were betting on a price rally for the asset.

Zcash’s sharp pullback triggers heavy long liquidations

According to CoinGlass data, long position traders saw $1,440,000 wiped out within this time frame as the price refused to soar.

Zcash has been gaining traction among holders who find the privacy feature appealing, given regulatory concerns on the broader crypto market.

Additionally, the coin has displayed impressive numbers, emerging as the best performer around mid-December 2025. Zcash’s boost occurred when the larger part of the crypto market stagnated, fueling the confidence of investors to bet on the asset.

It is worth mentioning that the confidence was rooted in evidence. Notably, Zcash soared by 28% within one week while other privacy coins struggled. So, the optimism of bulls was based on precedent, but current market volatility has left them with losses.

Zcash dropped from an intraday peak of $455.22 to a low of $414.06. This accounts for the massive liquidation imbalance noticed with the privacy coin. As of this writing, Zcash is changing hands at $418.86, down by 6.62% in the last 24 hours.

The asset’s trading volume has also entered the red zone, down by 0.17% to $589.72 million within the same period.

Although Zcash’s plunge remains single-digit in percentage terms, it is a source of concern to investors. There have been bullish conversations about the possibility of ZEC soaring to $500 before 2025 ends. However, the current liquidation casts doubt on positive expectations.

Meanwhile, bears also suffered losses as short position traders lost $97,690 when ZEC dipped. The drop below $415 support could have triggered the significant losses recorded by bearish traders.

ZEC ETF Speculation Keeps Long-Term Sentiment Intact

Despite the current volatility and mixed signals, the Zcash community sentiment remains bullish. 

The exchange-traded fund (ETF) S-3 registration filed by Grayscale suggests that ZEC is gaining institutional interest in the broader financial space.

If approved by the regulatory commission, it would mark the first Zcash ETF in the U.S. With its market cap currently over $6.8 billion, increased institutional interest could nudge it towards the $10 billion mark in a couple of years.