Zcash Breaks $1,200 for First Time in a Decade as ETF Inflows Fuel Short Squeeze

Zcash's ZEC token has surged past $1,200, reaching levels not seen in nearly a decade, as a combination of unprecedented ETF inflows and a punishing short squeeze reshapes the privacy coin's standing in the cryptocurrency market.

The rally accelerated dramatically in early September, with ZEC breaking through the psychologically significant $1,000 threshold on September 4 before continuing its climb. By Sunday morning in Asia, the token was trading around $1,231, roughly 20% above its previous close of $1,025. The gains extend a remarkable run that has seen ZEC rise approximately 145% over the past month and roughly 470% over six months.

Market capitalization has now exceeded $20 billion, propelling Zcash past Dogecoin(CRYPTO: DOGE)to claim the tenth spot among the world's largest cryptocurrencies. Trading volume has exploded in tandem, with 24-hour activity topping $1.45 billion according to CoinMarketCap data.

The rally has been particularly brutal for bearish traders. CoinGlass data shows roughly $34.5 million in short positions were forcibly liquidated as the token pushed through $1,000, with the resulting short squeeze amplifying the upward momentum. Coinalyze's snapshot put 24-hour liquidations at approximately $24.2 million, of which $22.6 million came from shorts against only about $1.5 million in long liquidations.