CoinDesk
Zcash surged more than 17% to nearly $1,358 in Asian trading on Thursday, far ahead of every other major, as a $345 million liquidation wave rolled through crypto markets following the Federal Reserve's first interest rate hike of the cycle. The Fed raised its target range by a quarter point to 375 to 400 basis points on Wednesday, a move markets had priced at roughly 69% going in. Some 86,816 traders were force-closed over 24 hours, with $208 million of shorts and $137 million of longs wiped out per CoinGlass data.
Why it matters
The hike was broadly expected, which is why Bitcoin barely moved on the decision itself, climbing just 1% to above $76,400. But the carry-trade math still bites: every basis point of yield lifts the opportunity cost of holding leveraged long exposure, and the cross-margin book on Hyperliquid and other perps venues flushed in unison once the dust settled on the FOMC statement. Alex Kuptsikevich, chief market analyst at FxPro, said in an email that Bitcoin had already "overreacted negatively" to the CLARITY Act failing in the Senate earlier in the week, leaving the largest crypto less exposed to a stronger dollar.
Market impact
Ether led the liquidation tally at nearly $89 million, Bitcoin at $85 million and Zcash at $56 million against a market capitalization of just $23 billion, a leverage intensity several multiples higher than BTC's. The largest single forced close was an $18 million Bitcoin position on Hyperliquid. Zcash's outsized move is being read as a short squeeze layered on top of retail interest in privacy-coin narratives, and the test is whether that leverage rebuilds through the US session. Every leg of this ZEC run has been leverage-fueled rather than spot-driven, and the carry math gets harder with every basis point of Fed yield.
Frequently asked questions
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Why did Zcash jump 17% after the Fed rate hike?
The Zcash move was largely a short squeeze layered on retail interest in privacy-coin narratives. ZEC produced $56M of liquidations against a market cap of just $23B, several multiples higher leverage intensity than BTC.
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How much in total was liquidated across crypto markets?
Some 86,816 traders were force-closed over 24 hours for a combined $345 million, with $208M of shorts and $137M of longs wiped per CoinGlass. Ether led at nearly $89M and Bitcoin at $85M.
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Why didn't Bitcoin react more to the Fed decision?
Markets had priced the 25bp hike at roughly 69% going in, so the move itself was broadly expected. FxPro's Alex Kuptsikevich noted Bitcoin had already "overreacted negatively" to the CLARITY Act failing in the Senate, leaving it less exposed to a stronger dollar.
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What was the largest single liquidation in this wave?
The largest forced close was an $18 million Bitcoin position on Hyperliquid, a perps venue whose cross-margin book flushed in unison once the FOMC statement settled.
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Is the Zcash rally sustainable or just leverage-driven?
Every leg of this ZEC run has been leverage-fueled rather than spot-driven. The structural risk is whether that leverage rebuilds through the US session, because carry math gets harder with every basis point of Fed yield.
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