Zcash hits $750! Arthur Hayes sells $5 million in alts for an exclusive bet on ZEC

On November 14, 2025, as the cryptocurrency market fell to multi-month lows, Arthur Hayes sold nearly $5 million in digital assets within 24 hours, including $2.48 million in Ethereum, $1.384 million in ENA, $480,000 in LDO, and several DeFi tokens. In stark contrast, Hayes publicly supported Zcash (ZEC), believing its market capitalization of only $10 billion has significant room for rise compared to XRP's $135 billion, even predicting that ZEC could reach a valuation of 0.2 Bitcoin. This selective dumping and concentrated betting reflect a shift in strategy among top investors during periods of market turmoil.

Analysis of the Large-Scale Asset Restructuring Details of Arthur Hayes

According to on-chain data monitoring by Lookonchain, Hayes executed a series of sell transactions through platforms like FalconX and Wintermute. The largest single sale was 2.48 million dollars worth of Ethereum, followed by 1.384 million dollars of Ethena (ENA) and 480 thousand dollars of Lido DAO (LDO). Other sales included 289 thousand dollars of Aave, 209 thousand dollars of Uniswap, and 124 thousand dollars of ether.fi, covering multiple mainstream DeFi blue-chip projects.

These transactions coincide with a widespread fall in the Crypto Assets market. Bitcoin has fallen to $94,000, hitting a six-month low; Ether has dipped below the $3,100 mark; most altcoins have also declined. Market liquidity has significantly dried up, volatility has surged, intensifying pressure on traders. Analysts point out that the selling behavior of large holders has worsened an already fragile market environment, and Hayes' actions reflect the general mentality among many investors eager to reduce risk exposure after severe market fluctuations.

Key data for Arthur Hayes asset adjustment

Total selling amount: approximately 5 million USD

Mainly sold assets:

• Ethereum: 2.48 million USD
• ENA: $1,384,000
• LDO: $480,000
• AAVE: $289,000
• UNI: $209,000
• ETHFI: $124,000

Trading platforms: FalconX, Wintermute

Time window: within 24 hours

Market Background: Bitcoin $94,000 (six-month low)

Zcash's Unique Performance and Investment Logic

In a generally falling market environment, Zcash has demonstrated remarkable resilience. It rose by 18.8% in the past week, with a monthly increase of 235.5%, standing out particularly against the backdrop of a collective decline in altcoins. Hayes clearly stated that Zcash has greater upward potential than XRP and revealed that ZEC has become his second-largest liquid asset holding after Bitcoin.

The latest market data shows that ZEC once reached 750 dollars, currently reported at 719 dollars, with a 24-hour rise of 1.95%.

Hayes' valuation model predicts that Zcash could reach a value of 0.2 Bitcoin, approximately $19,200. Based on this calculation, the market capitalization of Zcash would reach about $313 billion, making it the third largest Crypto Asset after Bitcoin and Ethereum. This prediction is based on Zcash's privacy technology advantages, limited supply, and the increasing demand from institutions for privacy coins. On-chain data shows that the number of addresses holding more than 10,000 ZEC actually increased during the price adjustment period, indicating that large investors are accumulating.

The privacy coin sector as a whole benefits from the increased clarity of regulations. Although the recent guidance issued by the U.S. Department of the Treasury's Financial Crimes Enforcement Network requires enhanced due diligence for privacy coin transactions, it effectively acknowledges their legal status. At the same time, the EU's MiCA regulation establishes a clear compliance path for privacy coins, reducing regulatory uncertainty. These developments create a more predictable operating environment for privacy-focused crypto assets such as Zcash.

Market Structure Changes and Liquidity Analysis

Hayes's sell-off action reveals deeper market dynamics. Large investors are shifting from broad allocation to selective bets, reflecting a significant decline in risk appetite. Derivative data shows that the overall market perpetual contract funding rate has turned negative, indicating that leveraged long positions have been largely liquidated, while the put option premiums in the options market are at a year-to-date high.

The liquidity distribution shows a polarization characteristic. Mainstream assets like Bitcoin and Ethereum still maintain high liquidity, with the bid-ask spread kept within 0.1%; however, the liquidity of small and medium market capitalization tokens has significantly deteriorated, with the bid-ask spread of some DeFi tokens expanding to 3%-5%, increasing the execution cost for large transactions. This liquidity differentiation may accelerate the flow of funds from marginal projects to core assets, further reinforcing the market pattern of 'the strong get stronger'.

From the perspective of exchange traffic, the stablecoin reserves of mainstream CEXs remain stable, with approximately $102 billion in purchasing power waiting for opportunities. However, investors' preferences have shifted towards defense, leaning towards holding stablecoins rather than risk assets. This change in mentality has prolonged the process of building a market bottom, and historically, similar periods typically require 4-6 weeks to restore balance.

Restructuring Investment Strategies for Altcoins

Hayes' asset restructuring reflects a shift in the investment paradigm of altcoins. The past strategy of “buy and hold” across the entire sector is being replaced by a “selective stock picking” approach. Investors are now more focused on the fundamental indicators of projects: revenue generation capability, sustainability of the token economic model, community activity, and regulatory compliance status.

Based on current market conditions, investors are advised to focus on three categories: DeFi protocols with clear revenue models (such as Aave, Uniswap); privacy coins with significant technological differentiation (such as Zcash, Monero); and RWA projects with good prospects for institutional adoption (such as Ondo Finance). Each category should not exceed 5% of the investment portfolio, and total exposure to altcoins should be controlled within 15%-20%.

Risk management is particularly important. Altcoins typically have a higher beta value than Bitcoin and experience larger declines when the market falls. It is recommended to set a hard stop-loss line at 15% and regularly check the project's development progress and financial status. For long-term holders, it may be worth considering hedging downwards risk through options strategies, such as buying out-of-the-money put options or constructing bear spreads.

Crypto Assets Market Cycle Positioning

The current market adjustment may not be the beginning of a bear market, but rather a healthy correction in the middle of a bull market. Analyzing from a cyclical perspective, Bitcoin has risen over 200% from the low point at the beginning of 2024, while altcoins have generally risen by 300%-500%, making technical corrections inevitable. Historical data shows that similar magnitude corrections are common in the middle of bull markets, with declines of 30%-40% occurring in both 2017 and 2021, followed by new highs.

The key difference lies in the institutional participation in this cycle. Spot Bitcoin ETFs and Ethereum ETFs provide traditional funding entry channels, making buying pressure more sustainable during downturns. According to Glassnode data, the supply of long-term holders remains stable during the adjustment period, indicating that steadfast believers are not panic selling. At the same time, institutional investors are taking advantage of low prices to increase their holdings, with ETFs such as IBIT and FBTC quickly seeing a rebound after capital outflows.

From a temporal perspective, this round of adjustment may last until the end of 2025, followed by a recovery in early 2026. Catalysts may include a shift in Federal Reserve policy, the complete manifestation of supply effects after the Bitcoin halving, and new breakthroughs in blockchain technology. Investors should remain patient and avoid making emotional decisions during extreme volatility.

Zcash Technology Evolution and Regulatory Dynamics

The technological development of Zcash supports its long-term value proposition. The Halo 2 upgrade, expected to be implemented in 2026, will introduce recursive proof compositions, significantly enhancing transaction validation efficiency and reducing fees. Currently, the size of Zcash's shielded pool has surpassed 3 million ZEC, reaching a new all-time high, indicating a sustained increase in user demand for privacy protection features.

The regulatory environment is improving. Although privacy coins have faced strict scrutiny, policymakers are gradually realizing that complete transparency is not an ideal state. Businesses have legitimate reasons to protect trade secrets, and individuals have the right to maintain financial privacy. This shift in understanding is bringing privacy coins from the margins into the mainstream, and they may even be integrated into traditional financial infrastructure.

Japan's stimulus plan may indirectly benefit privacy coins. Liquidity spillover usually first affects asset classes with lower market capitalization and higher volatility, which are characteristics of privacy coins. At the same time, investment in artificial intelligence may accelerate the development of zero-knowledge proof technology, which shares a cryptographic foundation with privacy coins.

Investment Outlook

When market pioneers like Arthur Hayes selectively sell mainstream assets and focus their bets on privacy coins, we see not only individual portfolio adjustments but also a reflection of the maturity of the crypto assets market. Identifying true value amid volatility and adhering to investment principles during panic is the distinction between professional investors and ordinary traders. The outstanding performance of Zcash reminds us that beyond the Bitcoin and Ethereum dominated narratives, there are still opportunities for excess returns - the key lies in identifying projects that address real needs, possess technological barriers, and have reasonable valuations. In today's extreme market sentiment, calm capital allocation may be more valuable than blindly chasing trends.