Bitcoin in danger of dropping to $60,000, with Zcash bulls turning their backs on ZEC
Bitcoin hovered just above $62,000 as it approached a potential test of $60,000. Zcash fell sharply after a critical Orchard pool bug raised supply-integrity concerns.
Intelligence analysis by GPT-5.4 Mini
The story combines two crypto stress points: bitcoin losing key support as ETF outflows and broader market weakness build, and Zcash getting hit by a severe bug disclosure that pushed even a high-profile bull like Arthur Hayes to exit.
Bitcoin is wobbling near a big floor at $60,000, like a ball rolling toward the bottom step. Zcash also got hit hard because a hidden software bug made people worry its coins might not be fully trustworthy.
Analysis
Bitcoin slides toward a key level
Bitcoin is trading a little above $62,000, leaving it roughly $2,700 above the round-number level at $60,000 that the article calls the next obvious downside test. The price has fallen close to 16% from last week’s levels above $74,000, with most of the damage coming over the past three sessions as the AI trade weakened globally.
Why the pressure is building
The article says the supports that held bitcoin through earlier 2026 drawdowns are no longer in place. It points to 15 straight sessions of net outflows from U.S. spot bitcoin ETFs, totaling more than $4.7 billion. It also notes that Strategy disclosed its first bitcoin sale since 2022, meaning it is no longer acting as the marginal corporate buyer that helped absorb selling in 2024 and 2025.
Zcash’s bug changes the narrative
Zcash fell 37% after Shielded Labs disclosed a critical bug in the Orchard privacy pool. According to the article, the flaw could have allowed unlimited, undetectable counterfeit tokens. It was present since Orchard’s activation in May 2022, discovered on May 29, and patched in an emergency fix by June 1.
The article says there is no cryptographic way to know whether the flaw was exploited before the fix. Shielded Labs is proposing a network upgrade with new accounting measures and broader security work to restore confidence in ZEC’s supply integrity.
Market reaction
Arthur Hayes, who had been one of the more visible bulls on Zcash, sold his entire ZEC position after reading about the exploit concern. He said the issue cannot be cryptographically proven impossible and that the privacy thesis he was holding ZEC against “demands perfection not improbability,” according to the post cited in the article.
Key points
- Bitcoin is trading just above $62,000 and is close to testing the $60,000 level.
- The article says bitcoin has fallen nearly 16% from last week’s highs.
- U.S. spot bitcoin ETFs have seen 15 straight sessions of net outflows worth more than $4.7 billion.
- Zcash plunged after Shielded Labs disclosed a critical Orchard pool bug that could have allowed counterfeit tokens.
- Arthur Hayes said he sold his entire Zcash position after learning about the issue.
If bitcoin holds above $60,000, the selloff could slow and the market may find a new base after a sharp drop. For Zcash, the emergency fix and proposed network upgrade could help rebuild confidence in supply integrity if users and validators accept it.
If bitcoin loses $60,000, the article says the next support is closer to $55,000, which would extend the current downtrend. For Zcash, uncertainty over whether the flaw was ever exploited could keep pressure on the token even after the patch, especially after a high-profile holder exited.
