ZEC experienced a big dump today, with the core reasons concentrated on four points. Understand them to avoid pitfalls!

1. Profit-taking concentrated escape: After the previous rise, the maximum long position decreased from 60,000 to 55,000, with whales cashing out at high levels triggering a chain reaction of selling pressure;
2. Contract market amplifies volatility: The total market value of contracts across the network exceeds $1 billion, with frequent high-leverage trading. The liquidation amount in 24 hours reached $18.88 million, and some large whales faced consecutive liquidations of short positions, further exacerbating the fall;
3. Regulatory risks for privacy coins are rising: Many countries around the world are tightening control over privacy coins, the EU's MiCA regulations prohibit the listing of privacy coins, and countries like the US and Japan are strengthening law enforcement. ZEC, as a mainstream privacy coin, has become the focus of regulatory attention, leading investors to preemptively hedge and sell off.
4. Market environment dragging down: Overall risk appetite in the crypto market is declining, liquidity is tightening, and the volatility of small-cap coins is being amplified, making it difficult for ZEC to stand out.