Crypto Market Faces Worst Week Since July 2024; Zcash Exploit Adds Pressure
Cryptocurrency markets are experiencing their worst weekly performance since July 2024, with Bitcoin (BTC) dropping nearly 15% and Ethereum (ETH) over 17% as of June 5, 2026. The downturn is attributed to multiple factors, including a capital rotation towards AI IPOs and low spot trading volume, which fell to $679 billion in April 2026, the lowest since October 2023. ETH is approaching a critical support level at $1,420; a break below could lead to 2022 bear-market levels. Privacy coin Zcash (ZEC) crashed over 30% after a security researcher discovered an exploit in its shielded pool that could have minted unlimited tokens, dragging down Monero (XMR) and Dash (DASH). Arthur Hayes added to the pressure by revealing his firm sold its entire ZEC position. Derivatives markets show clear deleveraging, with open interest dropping 15% and funding rates turning negative. The average RSI across all crypto pairs is in oversold territory, suggesting a potential relief bounce. Cardano's ADA also saw heavy losses, dropping over 10% after founder Charles Hoskinson said he was taking a break.
Key facts
- Bitcoin lost nearly 15% and Ethereum over 17% this week, worst since July 2024.
- Ethereum approaches critical support at $1,420; a break could lead to bear-market levels.
- Zcash dropped over 30% due to an exploit that could mint unlimited tokens.
- Derivatives show deleveraging: open interest down 15%, funding rates negative.
- Average RSI across crypto pairs is oversold, suggesting a potential relief bounce.