Zcash Breaks $1,000 as Short Sellers Face Massive Losses

Zcash recently surged past $1,000 for the first time in nearly ten years. The coin is up 120 percent over the past month and currently trades near $1,124. This rapid price action has left traders betting against the coin with significant unrealized losses.

Data reveals that three major whales are currently down roughly $39 million combined on their short positions. One trader in particular is sitting on a loss of over $21 million. Despite these mounting losses, these sellers have yet to close their positions. They are receiving some relief from positive funding rates, which act as a small payment from long traders to short traders.

Zcash is currently leading the privacy sector, which remains the only area of the market holding strong above October 2025 highs. While Bitcoin is well below its previous peak, the privacy sector has grown from $7.1 billion to over $33 billion in market value. A major driver for this interest is the new Grayscale Zcash ETF, which has attracted $463 million since its late August debut.

While the momentum currently favors the bulls, the high volume of futures open interest suggests the market remains volatile. With $2.56 billion in open interest, the market could shift quickly if sentiment changes. Traders should watch for whether these short positions eventually liquidate or if the price rally sees a correction.