Zcash Drops 21% From Recent High—Here’s Why the Rally May Not Be Over

In brief

• Zcash trades at $1,333.50, down 7.29% on the day and about 21% below its $1,698.00 peak, after climbing roughly 253% from a $480.72 base.
• Grayscale's Zcash ETF recorded a $30.25 million net outflow on Sept. 30, against $268 million in cumulative net inflows since launch.
• It's a rough stretch, but the charts suggest ZEC still has room to run.

Zcash is having a rough Thursday. ZEC is trading at $1,333.50, down 7.29% on the day, with about three hours left before the daily candle closes.

That puts the privacy coin roughly 21% below the $1,698.00 peak it hit in late September. It also shows how far ZEC had run: the coin climbed about 253% from a $480.72 base to that high.

The wider market isn't offering a lifeline. Bitcoin spiked to $85,600 on Wednesday after softer-than-expected PCE inflation data, then quickly gave it back. The 10-year Treasury yield closed at 5.29%, and the odds of an October Federal Reserve rate hike have fallen from 70% to below 50%, according to CME FedWatch.

Start with the ETF money. Grayscale launched its Zcash ETF, ticker ZCSH, on Aug. 25, and it had attracted $233 million in net inflows by mid-September.

Yesterday, the fund recorded a $30.25 million net outflow, leaving cumulative net inflows at almost $268 million. Its 3-for-1 share split also took effect that morning.