Odaily Planet Daily reports that privacy coins have given back recent gains and fallen along with the broader market. In the past 24 hours, ZCash fell 8.5%, Monero fell 5.4%, Dash fell 3.9%, and the entire privacy coin sector fell 15.4%.
Analysts say privacy coins are no longer traded as "safe-haven assets" but are instead influenced by the same macroeconomic factors affecting the broader crypto market, with their fate tied to Bitcoin's cycles. AMLBot CEO Slava Demchuk stated that for tokens like ZCash and Dash, whose on-chain transaction volumes remain largely transparent, they are "traded as speculative narratives rather than utility tools," thus behaving similarly to high-beta altcoins. Bitget Wallet CMO Jamie Elkaleh also pointed out that with the introduction of ETFs and significant inflows of funds, privacy assets are increasingly behaving like high-beta components of the broader ecosystem.
Demchuk explained that the historical drivers of privacy technology include advancements in encrypted privacy technologies, political regulatory pressure such as the EU's "chat control," and genuine demand from jurisdictions that see real risks to transparent ledgers.
Regarding future recovery, both experts agree that the rebound of privacy coins depends on whether Bitcoin can stabilize. Demchuk stated that if Bitcoin stabilizes at a higher level and market risk appetite returns, these tokens could "recover recent losses," and historically, their volatility has typically been greater than Bitcoin's. (Decrypt)
