All the news about $ZEC this week — bullish. The price dropped by 19%. How is something like that even possible? 🤔
I looked at Zcash this week and couldn’t believe my eyes: every piece of news is positive, yet the chart is red.
On the one hand: the NU7 upgrade activated on the testnet two days earlier than planned, reducing the block time from 75 to 25 seconds. Grayscale’s ZEC ETF surpassed $1 billion in assets. And on October 6, Winklevoss filed for another, competing spot ETF for Zcash.
On the other hand: in the week leading up to October 4–5, ZEC fell by about 19%, from the $1500+ area down to $1320–1340. The flagship Grayscale ETF had its first ever outflow week in history — $93.6 million in net outflows.
The explanation is simple: ZEC has already jumped 215% in a month, from $470 in mid-August to $1500+ in September. When the price runs ahead of the news that much, even good news can become a reason to lock in profits rather than buy more.
Interestingly, the outflow slowed down after October 5, and the price started recovering — +3.5% per day on the same upgrade. The market, it seems, is learning to tell the difference between a “good headline” and “the price already priced it in.”
The biggest takeaway: hype in headlines and price movement are not the same thing, and confusing them is costly.
Have you ever seen a bunch of positive news about a coin all at once while its price is falling?
$ZEC
#ZcashNU7
I looked at Zcash this week and couldn’t believe my eyes: every piece of news is positive, yet the chart is red.
On the one hand: the NU7 upgrade activated on the testnet two days earlier than planned, reducing the block time from 75 to 25 seconds. Grayscale’s ZEC ETF surpassed $1 billion in assets. And on October 6, Winklevoss filed for another, competing spot ETF for Zcash.
On the other hand: in the week leading up to October 4–5, ZEC fell by about 19%, from the $1500+ area down to $1320–1340. The flagship Grayscale ETF had its first ever outflow week in history — $93.6 million in net outflows.
The explanation is simple: ZEC has already jumped 215% in a month, from $470 in mid-August to $1500+ in September. When the price runs ahead of the news that much, even good news can become a reason to lock in profits rather than buy more.
Interestingly, the outflow slowed down after October 5, and the price started recovering — +3.5% per day on the same upgrade. The market, it seems, is learning to tell the difference between a “good headline” and “the price already priced it in.”
The biggest takeaway: hype in headlines and price movement are not the same thing, and confusing them is costly.
Have you ever seen a bunch of positive news about a coin all at once while its price is falling?
$ZEC
#ZcashNU7