Zcash Breakout Fueling Bitcoin’s Liquidity Drain: Negative Correlation at Play?

A renowned market watcher in the cryptocurrency space, JA Maartunn, made a bold suggestion regarding this. The influence of Zcash on Bitcoin (BTC). In one update shared with the broader crypto community, the analyst stated that the Zcash demonstrations often coincided with a decrease in the price of Bitcoin.

The price of Zcash increased by 750% amid the demand for privacy coins

“Every time ZEC spikes, BTC bleeds like clockwork,” wrote Maartunn.

It is implied that Zcash (ZEC) and Bitcoin are negatively correlated, possibly because traders rotate funds from BTC to ZEC. That is, during times of market volatility and speculative trading, investors are likely to move funds from Bitcoin to Zcash.

According to Maartunn, this pattern of capital movement has repeated itself constantly over time and has become very predictable.

Interestingly, the Zcash pricewhich was trading at less than $50 at the beginning of September 2025, has increased by more than 750% in the last two months. Some speculate that the spike could be triggered by increased demand for privacy coins as a result of regulatory scrutiny on traceable assets.

From less than $50 in September, the coin is trading above $400. As of this writing, Zcash is changing hands at $422.31, which represents an increase of 16.49% in the last 24 hours.

The asset rose from a daily low of $358.83 to a peak of $445.15 amid a bullish rally before settling at the current price. Its trading volume also recorded an increase of 2.46% to $1.37 billion, as the armored supply reached 4.5 million ZEC. This represents about 28% of the total supply of the privacy coin.

Comparatively, Bitcoin only managed a growth of 0.46% in the same time period, which supports Maartunn’s suggestions about the negative correlation.

Bitcoin struggles to regain momentum above $120,000

Maartunn’s suggestions have sparked a backlash among some investors in the Bitcoin space. A user, Simonwins, asked when the Zcash pump will end. He is probably worried about Bitcoin’s apparent stagnation in October.

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In particular, from October 6, after Bitcoin hit an all-time high (ATH) of $126,198.07, the coin struggled to retest $120,000. It only traded above this level for about four days before dipping into the $110,000 to $115,000 range.

The broader market liquidation caused a massive decline for the iconic crypto asset as it fell to a low of around $105,000.

However, Bitcoin is recovering and currently exchanges to $109,928.37, representing an increase of 0.16% in the last 24 hours. Its trading volume remains in the red zone, down 31.69% to $43.67 billion.