Arthur Hayes Slashes Altcoin Holdings Amid Market Turmoil, Doubles Down on Zcash (ZEC)
In a dramatic response to one of the harshest crypto sell-offs in recent months, Arthur Hayes, co-founder and former CEO of BitMEX, significantly reduced his exposure to several major altcoins while increasing his position in privacy-centric cryptocurrency Zcash (ZEC). The move comes amid a broader market correction that liquidated hundreds of millions in leveraged positions and sent shockwaves through digital asset markets.
Over a span of just 48 hours, Hayes liquidated nearly $5 million in altcoins, a strategic decision likely driven by extreme volatility and cascading liquidations. According to blockchain analytics from Lookonchain, Hayes executed a series of transactions through over-the-counter (OTC) platforms FalconX and Wintermute, signaling a methodical and urgent approach to de-risking.
His largest divestment was from Ethereum (ETH), where he offloaded approximately $2.48 million. This was followed by sales of $1.38 million in Ethena (ENA) and $480,000 in Lido DAO (LDO). Additionally, smaller positions in Aave (AAVE), Uniswap (UNI), and ether.fi were also liquidated, with several hundred thousand dollars’ worth of tokens moved swiftly to OTC desks.
These sales coincided with a market-wide downturn that saw over $620 million in positions wiped out in just 24 hours. Bitcoin (BTC) itself accounted for $243.5 million of those liquidations, with Ethereum contributing another $170 million. The scale of the unwinding was illustrated by a single $30.6 million liquidation on Hyperliquid’s BTC-USD pair. With risk levels escalating, traders and large holders alike were forced into defensive maneuvers.
Despite exiting a range of altcoin positions, Hayes did not retreat from the market entirely. On the contrary, he increased his exposure to Zcash (ZEC), a privacy-focused cryptocurrency that has recently seen growing interest among crypto enthusiasts and investors wary of surveillance and centralized scrutiny.
Hayes publicly signaled his renewed interest in ZEC by posting a ZEC/BTC chart and stating that he had “aped more,” slang for aggressively buying into a position. Since that post, the ZEC/BTC pair has rallied, climbing from around 0.0045 BTC to surpass 0.0068 BTC. The chart now shows a consistent pattern of higher highs and higher lows, coupled with increasing trading volume—an indication that momentum in ZEC is building.
This pivot to privacy coins comes as liquidity tightens and the regulatory landscape grows more complex. In an environment where transparency and traceability are becoming more common with mainstream tokens, privacy coins like ZEC are starting to regain favor among crypto veterans who value anonymity and financial sovereignty.
Hayes’ interest in ZEC also aligns with his broader macroeconomic views. He has previously stated that crypto markets are poised for growth, particularly in the aftermath of Bitcoin halving events. He anticipates that the current cycle could peak in late 2025 or even extend into 2026, especially if fiscal stimulus under a potential Trump administration continues to fuel risk-on sentiment across global markets.
While Hayes has a history of timing the market with mixed results—such as selling Ethereum at a local bottom in August and rebuying at higher prices days later—his conviction in ZEC suggests a longer-term strategy. The privacy coin, often overshadowed by more popular assets like Monero (XMR), may now be positioned for a resurgence as concerns over digital privacy and censorship grow.
ZEC’s fundamentals also play into Hayes’ investment thesis. With a capped supply, a strong cryptographic foundation using zk-SNARKs, and increasing network adoption, Zcash represents a tangible hedge for those anticipating a more regulated and surveilled future for digital assets.
Another factor potentially influencing Hayes’ decision is the evolving regulatory climate. Governments worldwide are pushing for more stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. This has led to a crackdown on anonymizing tools and privacy-enhancing technologies. Ironically, this regulatory pressure may be driving renewed interest in projects like Zcash, as investors seek out assets that preserve financial freedom.
Moreover, the psychological impact of mass liquidations shouldn’t be underestimated. When over 150,000 traders are wiped out in a single day, the market enters a phase dominated by fear and uncertainty. For seasoned investors like Hayes, this creates both a warning sign and a buying opportunity. By unloading volatile altcoins and reallocating into what he perceives as undervalued and strategically relevant assets, he’s making a calculated bet on the future of privacy in crypto.
Hayes’ maneuver also highlights the shifting sentiment within the investor community. While DeFi tokens and high-profile altcoins enjoyed the spotlight during the last bull run, the current environment favors assets with unique value propositions and real-world use cases. Privacy coins, particularly those with strong development teams and active communities, are once again being considered viable long-term plays.
In addition to ZEC, the broader privacy coin market may see increased traction. Coins like Monero (XMR), Dash (DASH), and Beam (BEAM) could benefit from the same tailwinds, especially if geopolitical tensions rise and financial surveillance becomes more pervasive.
From a technical standpoint, ZEC’s recent breakout against BTC indicates growing relative strength. If this trend continues, it could mark the beginning of a new phase in the market cycle where investors prioritize resilience, privacy, and decentralization over hype-driven gains.
In summary, Arthur Hayes’ recent portfolio reshuffling reflects more than just a reaction to market volatility. It’s a strategic repositioning that underscores a growing interest in privacy-centric assets. By shedding risk in overexposed areas and doubling down on ZEC, Hayes is placing his bets on a future where financial privacy becomes not just a preference—but a necessity.