According to data compiled by Woofun AI, capital flows in the crypto market have shown a striking divergence: Bitcoin ETFs (IBIT.US) lost more than $500 million in just two days, while Wall Street investors simultaneously poured $41.1 million into the Zcash market. This contrarian bet on a privacy-focused cryptocurrency against the backdrop of a sharp pullback in mainstream assets has sparked widespread discussion about whether investors expect Zcash to rebound ahead of a broader market recovery.
Looking at the specific flow structure, although Bitcoin-related funds still managed a net gain of $301.2 million for the week thanks to earlier buying activity, Ethereum ETFs (ETHA.US) suffered outflows of $220.7 million. By contrast, Zcash ETFs, after three weeks of weakness that saw cumulative losses of $143 million, managed to recover nearly 29% of those losses last week. Data compiled by Woofun AI shows that Grayscale's Zcash ETF recorded its largest single-week inflow since mid-September, with $10.4 million entering on Monday and $20.5 million on Friday alone, driving four consecutive days of net inflows. This return of buying interest suggests some investors are willing to bet on a recovery after the pullback, though existing data cannot fully explain the reasons behind the renewed inflows.
Looking back at September, Zcash saw $98.2 million in single-week inflows before immediately suffering three weeks of outflows, with its price falling back from a peak near $1,690. The current flow dynamics will need to be validated against subsequent ETF data and the outcome of the Federal Reserve's meeting on October 27-28 to determine whether the trend is sustainable. Technical analysis shows that Zcash rebounded after falling to $1,118 last week and now faces a key resistance level at $1,200.
Analyst views are sharply divided: bulls argue that if the price closes above $1,223, short-term moving averages could cross around October 28, signaling stronger upward momentum. Meanwhile, the "whale factor" analyst takes a pessimistic stance, noting that Zcash is in a downtrend channel and that $597 is the important historical support level. The analyst further pointed out that watching for a green moving average crossover on the 1-day timeframe, expected to occur in about five days, is critical. A close above $1,223 and a breakout past the $1,414 resistance level would be needed to trigger the moving average crossover, but for now this remains merely a hopeful fantasy for investors. Next week's market focus will center on the fierce battle around the $1,200 zone.
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