New Wallet Bets $3.6 Million on ZEC: Bottom Rebound or Chasing High to Take Over

A newly created wallet has deposited $3.6 million USDC into the HyperLiquid trading platform and opened a 10x leveraged long position on ZEC. Currently, there are additional buy orders in the $400 to $401 range. This large-scale positioning appears after ZEC experienced a rollercoaster market, sparking market attention on its subsequent trend.

Event Overview

According to the latest news, the specific actions of this new wallet include:

• Depositing $3.6 million USDC into HyperLiquid
• Opening a 10x leveraged long position on ZEC
• Placing additional buy orders in the $400 to $401 range

This operation is substantial; the $3.6 million deposit can be easily tracked on-chain. More notably, this is a newly created wallet, indicating the funds originate from a new address with a relatively mysterious background.

Current Market Environment for ZEC

To understand the implications of this large positioning, we need to look at ZEC’s current situation:

Price Performance and Technical Analysis

ZEC is currently priced at $406.87, with a market cap of $671 million, ranking 18th among cryptocurrencies. The 20% drop over 7 days indicates ZEC recently experienced a notable decline.

Core Issues Facing ZEC

According to related information, ZEC has recently fallen into multiple difficulties:

• Internal governance disputes: Problems within the Zcash Foundation, ECC, and Bootstrap governance mechanisms; the Foundation’s chairperson resigned, raising community concerns about the project’s future
• Policy risks: The Thai government announced plans to ban anonymous cryptocurrencies, posing a direct threat to privacy coins like ZEC
• Macroeconomic headwinds: Weak US non-farm payroll data, increasing fears of recession, and risk assets under pressure

These factors combined have exerted significant selling pressure on ZEC recently.

Significance of the New Wallet’s Positioning

Contradictory Signals

In the context of ZEC’s sharp decline, the new wallet’s large long position is a contrarian signal. This could imply:

• The funder believes ZEC is near bottom
• The current price has already reflected most negative factors
• They are preparing to bottom fish when market sentiment is at its worst

Comparison with Other Major Players’ Actions

Interestingly, other large traders’ actions have also been recorded:

• Big Brother Maji opened a 10x long on ZEC on January 11 but closed it after just 1 hour, realizing a profit of only $2,544
• The largest short position on ZEC increased holdings in UNI and WLFI during the same period, with an unrealized profit of $6.9 million

This indicates a clear divergence in market views on ZEC—some are accumulating at lows, others continue to short other tokens.

Signal of Additional Buy Orders

The new wallet has placed additional buy orders in the $400 to $401 range, a detail that cannot be ignored. This suggests:

• The position initiator not only has a current long but is also prepared to add more if prices fall further
• Shows confidence in a ZEC rebound
• But also indicates they believe ZEC could have further downside space

Market Outlook

Based on current information, ZEC’s future trend may exhibit the following characteristics:

• Short-term: Entry of new funds could ease selling pressure, but a meaningful rebound depends on whether more capital follows
• Mid-term: ZEC needs fundamental improvements, such as resolving team issues or clarifying policy risks
• Long-term: With ongoing policy deterioration for privacy coins, ZEC must find a compliant development path

Summary

The $3.6 million deployment by the new wallet reflects some market bottom-fishing sentiment, but it does not mean ZEC’s difficulties are resolved. Instead, it might be a probing move at the bottom. Fundamental challenges like team issues and policy risks still exist; large capital inflows are primarily a technical signal. Investors should monitor both fundamental improvements and market sentiment shifts to judge whether this positioning can truly reverse ZEC’s downward trend. Future focus should be on whether this new wallet continues to add positions and whether ZEC can find new development directions under regulatory pressures.