TradingKey – Privacy-focused cryptocurrencies saw a collective retreat on Monday, October 13, diverging from the broader market rebound.
While most digital assets bounced back from last week’s crash, privacy coins like Zcash (ZEC), Dash (DASH), and Monero (XMR) reversed recent gains:
DASH fell nearly 9%, currently trading at $52
ZEC dropped over 6%, now at $241
XMR slipped more than 1%, priced at $310
Top 10 Crypto Decliners – Source: CoinMarketCap
In the days prior, privacy coins had briefly followed the market downturn before staging a strong rebound. ZEC led the charge, recovering all losses and nearly touching $300, its highest level in over a year.
Since October 1, when crypto analyst Nava remarked that:
“Bitcoin is insurance for fiat, and Zcash is insurance for Bitcoin,” privacy coins have shown a notable inverse relationship with BTC. That is, when Bitcoin rises, privacy coins tend to fall — and vice versa.
This dynamic suggests that some investors may be rotating between BTC and privacy assets based on macro sentiment and hedging strategies. As Bitcoin regains strength, privacy coins may face short-term pressure, though their role as alternative hedges remains intact.
