CryptoSlate
Zcash fell below the psychologically key $1,000 level, trading near $965 on Nov. 12 after a 24-hour low around $953. Kairos Research traced the selloff to the rapid closure of a 12,500 ZEC long position on Hyperliquid, closed via market orders within two seconds at 15:29:58 UTC on Nov. 10 just as Bitcoin began retreating. Over the following 90 minutes, traders sold a net 160,000 ZEC across four perpetual futures exchanges, with ZEC dropping from $1,193 to $1,001.
Why it matters
The composition of the selling is the tell. Kairos found the pressure came from leveraged traders unwinding existing longs rather than forced liquidations: on Hyperliquid, taker sales closing longs reached 109,000 ZEC between 14:30 and 17:00 UTC, while forced liquidations accounted for only 6,900 ZEC. Spot markets also absorbed roughly 27,000 ZEC in net taker selling.
Fresh supply is now stacking on top of that unwind. Coinbase received another 16,300 ZEC by 18:00 UTC on Nov. 11, including 9,800 ZEC from three wallets inactive since withdrawing funds from Coinbase Prime in late 2025, and Binance took in 8,600 ZEC. Those dormant wallets still hold about 19,000 ZEC, leaving a visible overhang above the market.
Market impact
Selling pressure has extended to Grayscale's Zcash ETF, ZCSH, which recorded roughly $13 million in outflows in the week ending Nov. 6 and another $17 million this week, pushing withdrawals toward $30 million. The fund's cumulative net inflows have fallen to $192 million and total net assets dropped to $562 million from about $772 million the prior week. Kairos found no evidence fresh ETF redemptions caused the initial selloff.
The bull case remains intact on fundamentals: developer numbers have roughly doubled in two years, the NU7 upgrade cut target block times from 75 to 25 seconds, and over 29% of circulating supply sits in shielded pools. But until the dormant-wallet overhang clears, renewed selling could keep testing ZEC's ability to reclaim $1,000.
Frequently asked questions
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Why did Zcash fall below $1,000 on Nov. 10?
Kairos Research traced the selloff to the two-second market-order closure of a 12,500 ZEC long on Hyperliquid, which triggered 160,000 ZEC in net selling across four perpetual futures exchanges in about 90 minutes.
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Were forced liquidations the main driver of the ZEC selloff?
No. Kairos found traders were unwinding existing long positions rather than being liquidated: forced liquidations accounted for only 6,900 ZEC, compared with 109,000 ZEC in taker sales closing longs on Hyperliquid.
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How much ZEC from dormant wallets moved to exchanges?
About 24,900 ZEC arrived at Coinbase and Binance after the decline, including 9,800 ZEC from three wallets inactive since withdrawing from Coinbase Prime in late 2025. Those wallets still hold roughly 19,000 ZEC.
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How large are the outflows from Grayscale's Zcash ETF?
ZCSH recorded about $13 million in outflows in the week ending Nov. 6 and another $17 million this week, approaching $30 million total. Net assets fell to $562 million from about $772 million the prior week.
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Did ETF redemptions cause the initial ZEC selloff?
Kairos found no evidence they did. ZCSH traded 2.46 million shares on Nov. 10 without new creations or redemptions, and the 1,861 ZEC moved to Coinbase Prime settled an earlier withdrawal.
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