Zcash, Hyperliquid tokens lead losses as traders bet against a bitcoin bounce
Zcash and Hyperliquid tokens plunged over 10% in 24 hours as the broader crypto market slumped ahead of key US inflation data, with bitcoin falling below $61,500 and its 200-week moving average.
The crypto market extended its decline on Wednesday, with altcoins such as Zcash and Hyperliquid's HYPE token suffering double-digit losses as traders bet against a sustained bitcoin bounce.
Zcash (ZEC) and Hyperliquid (HYPE) each dropped over 10% in the past 24 hours, leading losses among major tokens. Other altcoins including ADA, ONDO, and BCH fell more than 4%. The broader market, as measured by the CoinDesk 20 Index, declined 3% during the period. Bitcoin (BTC) slipped back below $61,500, nearly reversing the Sunday bounce that briefly pushed prices above $64,000 on some exchanges. More notably, bitcoin is now trading below its 200-week simple moving average (SMA), a key technical level that has historically acted as support during bull markets.
The selloff comes ahead of pivotal US inflation data due later this week, which is expected to show the cost of living rose to a three-year high of over 4% in May. A higher-than-expected reading could reinforce the Federal Reserve's hawkish stance, weighing further on risk assets including cryptocurrencies. The correlation between bitcoin and tech stocks remains elevated, and rising bond yields have historically drained liquidity from speculative markets. Live crypto prices and charts on NowPrice show how the market is reacting in real time as traders adjust positions ahead of the data.
Looking ahead, traders will closely watch the inflation print and the Fed's policy response. A break below the 200-week SMA could open the door to further downside, with the next major support around $55,000. Conversely, a dovish surprise could spark a short-covering rally, but the prevailing sentiment remains cautious. On-chain data shows exchange reserves continuing to decline, which may provide a floor for prices in the medium term, but near-term volatility is likely to persist until the macro picture becomes clearer.