Why is it the privacy sector again? Are the brothers who shorted ZEC doing well?

Bitcoin hasn't yet climbed out of the quagmire, but the privacy sector has already exploded.

In the past 24 hours, NIL rose 33%, DASH increased 20.5%, ZEC gained 17.35%, and even briefly broke through $688. Just over ten days ago, ZEC was hovering around $320. Doubling in less than 10 days, then a sharp pullback, followed by another surge—this speed and volatility are straight out of the crypto cartoon.

Brothers who shorted ZEC with loans, are you doing okay?

Last time ZEC surged significantly, some brothers posted pictures of borrowing 200k to short it. Many probably saw that.

I once said: ZEC will eventually bankrupt 90% of the stubborn holders. Not because it's bad, but precisely because it's too fierce. Its high volatility is not something most people can withstand.

Why is the privacy sector "booming" again?

This round of collective surge in privacy coins seems on the surface to be "funds rotating"—Bitcoin fluctuating between 76k and 78k USD, some funds flowing out of mainstream assets and into privacy tracks. But the deeper reasons are much more complex.
The first layer is the "quantum threat" narrative.

Quantum computing's threat to current encryption systems is no longer science fiction. Zcash is doing something: planning to launch a quantum-recoverable wallet within a month, aiming for full quantum resistance within 12 to 18 months. In other words, while Bitcoin is still discussing "what to do about quantum attacks," ZEC is already reinforcing its defenses. The market is buying into this narrative.

The second layer is the easing of regulatory pressure.
The US SEC has ended its investigation into the Zcash Foundation without enforcement action. This news directly pushed ZEC up 12% in a single day. Under the backdrop of regulatory "loosening," suppressed demand for privacy coins is beginning to be released.

The third layer is real adoption data growth.
Zcash's shielded pools (completely private ZEC) now hold 30% of the circulating supply, hitting a new high. This is not hype; people are actually using it.

These three factors stack together, forming the "trinity" logic behind this privacy sector rally. DASH rose 12%, Monero followed suit, ZEC led the charge—this sector is telling a separate story under the shadow of Bitcoin's sluggishness.
After ZEC hits $680, where is the ceiling?

After ZEC broke through $688, everyone's question is the same: Can it still go up? Will it fall apart?

On the technical side, ZEC has broken through the key resistance at $560, with analysts targeting $625 and $680 next. $680 has been reached, so what about beyond? Some see $800, others see $1,000. But I suggest you stay calm and look at another set of data.

Open interest in ZEC futures has surged to about $1.23 billion in the past 24 hours, up 35%. What does that mean?

Leverage funds are pouring in wildly.

Leverage is always a double-edged sword—it can make gains sharper but also cause sharper crashes.

Looking at the "largest short position" on ZEC, although they closed $5 million worth, they still hold about $8.02 million in ZEC short positions, with an unrealized loss of about $1.17 million. That means,

Some are betting on it falling. Bulls and bears are fiercely battling around $680, with no clear winner yet.
As for whether it will fall apart—history of privacy coins tells us that after every surge, there is a plunge. But ZEC's uniqueness lies in its real use cases, institutional investments (Multicoin Capital disclosed holding "considerable" ZEC), and its long-term quantum resistance story. It may pull back, but the chance of it going to zero is much lower than those purely speculative meme coins.

Has Bitcoin escaped the mud?

Let's talk about the big brother.
Bitcoin once rose to $78,000 today, seeming to warm up. But don’t celebrate too early; the $76,000 to $78,000 range is the real "life and death" line. The past two years' key support zone is between $74,000 and $76,000. If that level doesn't hold, the next support is at $72,000, and below that, the psychological threshold at $70,000.

What’s even more worrying is the macro environment. The Federal Reserve's April meeting minutes just released show participants believe inflation remains high, and escalating Middle East tensions add to economic uncertainty. There are even reports that if the Iran conflict persists and inflation continues to rise, the Fed might consider raising interest rates.

On one side, privacy coins are celebrating; on the other, Bitcoin is pacing on the cliff edge.
This split is becoming the new normal in the crypto market by 2026. When institutional funds retreat and macro pressures intensify, capital tends to flow into those "stories worth telling" in niche sectors.

How long will the privacy sector "explode"? Nobody knows. But one thing is certain:

In this market, the most dangerous thing isn't shorting, but those who think they can predict the top and bottom.