Crypto’s rough ride: Bitcoin and Ethereum take a hit while privacy coins stumble

This week, cryptocurrency markets hit a rough patch, with Bitcoin and Ethereum dropping sharply—something not seen since mid-2024. Bitcoin fell nearly 15%, while Ethereum lost over 17%, marking one of the worst weekly performances in years. Trading activity also slowed to its lowest point since late 2023, suggesting buyers aren’t rushing in. Behind the slide? A few key factors: a security flaw in Zcash, a privacy coin that crashed over 30% after researchers warned of a potential token-minting exploit, and big investors pulling back amid excitement over AI-related stock offerings.Ethereum, already struggling, is now flirting with a critical price level—around $1, 420—that it bounced off last year before surging to new highs. Dropping below that could send it back to 2022’s bear-market lows. Meanwhile, derivatives data shows traders are getting cautious, with funding rates turning negative and more bets placed on price drops rather than rises. Over $1 billion in positions were wiped out in 24 hours, mostly from long-term holders betting on higher prices. Zcash wasn’t the only privacy coin taking a beating. Monero and Dash also slid after the exploit news, and a major crypto figure publicly dumped his entire Zcash holdings, adding to the panic. Even AI-linked tokens, which started the week strong, lost steam as the market mood soured. One small bright spot? Most crypto assets are now in "oversold" territory, meaning prices might bounce back soon—but that’s no guarantee.