Zcash bets turn into second-largest liquidations behind bitcoin as ZEC rockets 30%
The privacy coin extended its multi-month rally on Tuesday with $46.7 million in shorts liquidated, after Multicoin Capital disclosed a significant ZEC position.
What to know:
- Zcash surged nearly 30 percent to $543 on Tuesday, extending its 30-day gain to more than 110 percent and triggering about $62 million in futures liquidations, mostly from short sellers.
- The rally followed Multicoin Capital’s disclosure that it has been accumulating a large Zcash position, arguing that ZEC’s shielded transactions offer protection against growing government efforts to scrutinize and tax visible crypto holdings.
- Roughly 30 percent of ZEC’s supply now sits in shielded addresses, a record level that analysts say aligns this price move more with real adoption than with past, more speculative rallies, even as the token remains below its late-2025 high near $750.
Volume crossed $1.3 billion in the past day and the rally triggered nearly $62 million in total liquidations across roughly 5,000 traders. Of that, almost $60 million was shorts while longs lost just over $3 million, making ZEC-tracked futures the second highest liquidations behind bitcoin in an unusual move.
The price surge came as prominent crypto fund Multicoin Capital disclosed it had been building a significant ZEC position since February.
“Zcash is a return to the cypherpunk ideals crypto was founded on,” fund partner Tushar Jain wrote on X. He framed the thesis around California’s “wealth seizures” – calling those a warning shot for what comes next as governments globally move to claim more visibility over private holdings.
“Bitcoin is censorship-resistant, no one can freeze your BTC or stop you from using it,” Jain wrote. “But that doesn’t stop the state from seizing known holdings through wealth taxes.”
