The post Privacy Coins Like ZCash Slump as Safe Haven Narrative Fades, Tied to Bitcoin Cycles appeared on BitcoinEthereumNews.com.

Privacy coins like ZCash and Monero have declined sharply, losing recent gains as they align with Bitcoin’s market cycles rather than serving as safe havens. Analysts attribute this to increased transparency in trading volumes and broader macroeconomic influences, with ZCash down 8.5% and Monero down 5.4% in the last 24 hours per CoinGecko data. Privacy coins sector drops 15.4% overall, reversing Q4 rallies. Tokens now behave like high-beta altcoins, tied to Bitcoin’s performance. 5.4% decline in Monero and 8.5% in ZCash, with Dash at 3.9%, reflecting market-wide downturn. Discover why privacy coins like ZCash and Monero are dropping amid Bitcoin cycles. Explore expert insights on this shift from safe havens to speculative assets—stay informed on crypto trends today. What Is Causing the Recent Drop in Privacy Coins Like ZCash and Monero? Privacy coins such as ZCash and Monero are experiencing a notable decline due to their integration into broader cryptocurrency market dynamics, abandoning the traditional safe haven narrative. According to data from CoinGecko, the sector has fallen by 15.4%, with ZCash dropping 8.5% and Monero 5.4% over the past 24 hours. This reversal follows explosive rallies in the fourth quarter, as these assets now correlate closely with Bitcoin’s cycles influenced by macroeconomic factors like ETF inflows and monetary policy. How Are Privacy Coins Influenced by Broader Market Forces? Privacy coins are increasingly affected by the same drivers as the overall crypto market, including ETF positioning and expectations around monetary policy. Slava Demchuk, CEO of AMLBot, explained to COINOTAG that the safe haven perception broke in December as markets adjusted to realities like transparent on-chain volumes for coins such as ZCash and Dash. These assets now trade as speculative narratives rather than utility tools, leading to drops similar to high-beta altcoins. Jamie Elkaleh, CMO at Bitget Wallet, added that with significant…

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Filed under: News - @ December 2, 2025 4:17 pm