Zcash (ZEC) has dropped 21% from its September peak of $1,698 to $1,333.50, driven by ETF outflows from Grayscale's newly launched ZCSH fund and sentiment concerns after suspected North Korean hackers routed $3.9 million through its shielded pool following the $387 million Bitget exchange hack. Technical indicators suggest this is a correction rather than a collapse, with the coin still up 253% from its base and potential support levels at $1,233 and $1,410.72.
Bitcoin enters October, historically its strongest month, but faces headwinds from elevated Treasury yields (5.3%) and expected Federal Reserve rate hikes. Bitcoin ETFs saw strong inflows in late September before reversing, while prediction markets give Bitcoin a 90% chance of reaching $85,000 but only 7% odds of a new all-time high before 2027.
The Federal Reserve's PCE inflation index came in cooler than expected in August, with core PCE at 3.0% versus forecasts of 3.3%, reducing rate-hike odds to 37%. Bitcoin surged above $85,000 on the dovish inflation data, though broader markets declined as Treasury yields hit 20-year highs around 5.25%.