Zcash continued to correct after a sharp rise this week, and the high-leverage positions accumulated in the market began to be liquidated in a concentrated manner. According to CoinGlass data, ZEC fell by about 10% to 12% in the past 24 hours, with prices fluctuating around $1090 to $1120, a significant decline from its peak of nearly $1298 on September 9th.
24-hour margin call approached $28 million
This round of decline led to the forced liquidation of approximately $27.6 million in positions in the ZEC futures market. At the same time, the number of open contracts decreased to about $2.11 billion, indicating that some traders are reducing their leveraged exposures.
Futures trading continues to remain at a high level. In the past 24 hours, the trading volume of ZEC futures was approximately 8.3 billion US dollars, while the trading volume of spot goods was about 760 million US dollars, indicating that the activity in derivatives trading is significantly higher than that in the spot market.
- ZEC A 24-hour decline of about 10% to 12%
- Futures margin call amount is approximately $27.6 million.
- Unclosed contracts dropped to approximately $2.11 billion
The annual increase once exceeded 2400%.
This callback occurred after a rapid rally during the Zcash period. Reports indicate that ZEC has seen a cumulative increase of over 2400% in the past year, and this week it approached $1300 from a level of less than $500 in August.
As prices rose rapidly, leveraged funds also expanded accordingly. The number of open futures contracts ZEC approached approximately $2.9 billion near the peak, which means that any significant pullback in prices would put a great deal of high-leverage long positions under pressure.
Unlike the previous situation where short positions were squeezed out, the main pressure on the market this time is coming from the crowded long positions. The unliquidated contracts have fallen from high levels, indicating that the market is undergoing a deleveraging process.
Grayscale ETF Scale Increases to $533 Million
Despite the intensification of short-term fluctuations, institutional funds have not completely withdrawn. According to fund disclosure data, as of September 8th, the Zcash ETF (of Grayscale) managed assets amounted to approximately 533 million US dollars, holding about 464,500 ZEC.
This amount has increased from approximately $463 million a few days ago. However, the growth in assets does not entirely equate to new inflows; a portion of it also comes from the increase in market value due to the rapid rise in the price of ZEC.
The report mentions that ETF has provided a new channel for institutional funds to allocate their capital, and it has also drawn additional attention to the privacy coin sector. When ZEC previously broke through $1200, the demand for ETF, the tightening of the supply in circulation, and the expansion of derivative positions were considered the main driving factors.
Around $1,050 is a short-term observation level.
What the market will be watching next is whether ZEC can stabilize within the range of $1050 to $1100. If the price can continue to hold this range, it indicates that the buying force is still absorbing the selling pressure resulting from earlier profit-taking.
If it falls below $1,050, the deleveraging process may continue to accelerate, and market volatility could further increase. With approximately $2.1 billion in open positions and over $8 billion in futures transactions on a single day, the subsequent trend of ZEC will still be susceptible to the influence of leveraged funds.
