Bitcoin Stays Above $83K as Zcash Crashes Amid Inflation Fears

Bitcoin has proven its resilience in times of uncertainty by holding above $83K despite rising interest rates, climbing energy prices, and geopolitical tensions. On September 28, the largest cryptocurrency by market cap dipped roughly 1.7% to the $83,000 area but maintained a floor well above its mid-August lows near $75,000 to $77,000.

Zcash, on the other hand, took a significant hit, shedding approximately 12% in a single session amid inflation fears. The token had been on a historic tear, rallying more than 2,000% from earlier lows near $50 to an all-time high above $1,485 earlier in September.

The sharp decline of Zcash can be attributed to futures liquidations exceeding $1 million in a single session. This move came as the Fed hiked its target rate by 25 basis points to a range of 3.75% to 4% on September 16, citing resilient economic activity alongside stubbornly elevated inflation.

Bitcoin's ability to hold the $83,000 level can be attributed in part to the institutional infrastructure built around it over the past two years. Spot ETFs, corporate treasury allocations, and sovereign-level interest have created a buyer base that doesn't liquidate positions due to macro shocks.