ZEC & DASH: Privacy Coins Thrive During Market Downturn

ZEC and DASH Advance in Privacy Coins as Market Downturn Continues

5 November 2025 at 08: 29

Reading time: 2 minutes

The crypto markets are experiencing another risk-free session. Bitcoin has fallen 3,5% over the past 24 hours, bringing the price close to its October low of around $103.600. If this trend continues, the largest cryptocurrency will be at its lowest level since June.

The CoinDesk 20 Index is down 5% and significant altcoins such as ether and Solana, have reached their lowest prices since August. These declines appear to be rooted in multiple factors, including Fed Chairman Jerome Powell's hawkish remarks, a strengthening of the dollar index, and continued selling from old crypto portfolios.

As market maker Wintermute notes: “Lquipment is growing globally, but capital isn't flowing into the crypto sector.” Inflows into Exchange-Traded Funds (ETFs) have stagnated, while DApp (decentralized application) activity has declined. Only stablecoins are still showing some growth.

There's another perspective worth considering, however. The bearish trend may be correlated with the flash crash of October 17, where arbitrage investors locked in losses on their futures positions due to automatic deleveraging. This may have led these companies to quietly liquidate their remaining long mortgage positions, putting additional downward pressure on prices.

As markets shudder, Stream Finance’s stablecoin xUSD has suffered a disturbing 80% drop to 30 cents, resulting in a $93 million loss for the DeFi (decentralized finance) company due to a third-party fund manager. Stream Finance has hired a leading law firm to investigate the matter, while the crypto community nervously assesses the broader market impact.

One notable observation is that borrowers of xUSD are now earning over 500% daily interest, which is a clear indication that the protocol's treasury is in serious trouble.

Amid this gloom, some privacy coins, such as Zcash, Decred, and DASH, are benefiting from the situation, with increases of up to 200% within 24 hours. This suggests traders are seeking shelter where possible.

In traditional markets, the recent rise in credit default swaps (CDS) tied to Oracle is being interpreted as an indication of investor fear over the company's growing AI-related spending. The dollar index has risen to 100 for the first time in months, further complicating the Bitcoin bull market. Meanwhile, gold remains stable around $4.000 per ounce. Stay alert!

Frequently Asked Questions

What is the impact of Jerome Powell's hawkish statements on the crypto market?
Powell's remarks signaling a tightening of monetary policy are creating uncertainty among investors, leading to market hesitation and falling prices for assets like bitcoin and ether.

Why are we seeing increases in privacy coins despite the overall market correction?
Traders are looking for safe havens in times of volatility, and privacy coins are seen as valuable assets that offer protection against market fluctuations.

How could the fraction of the October flash crash impact current markets?
The resulting liquidations could lead to continued selling of long positions, which could put additional pressure on prices and further fuel the bearish trend.

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