- Zcash defies market trends, rising despite institutional selling of major altcoins.
- Ethereum and Solana ETFs see heavy outflows, signaling broad institutional de-risking.
- DeFi exploits deepen market fear as liquidity and macro pressures weigh on crypto.
Crypto analyst Lark Davis identified a sharp divergence in the altcoin market on Nov. 5, noting that privacy coin Zcash continued to rally while institutional selling pressure crushed Ethereum and Solana. Davis stated in a video analysis that Zcash [coin_data_widget ticker=”ZEC”] “defies all reality” and “continues to grind higher slowly.”
Photo Credit: TradingView / ZEC/USD
Institutional Selling Drives Ethereum, Solana Weakness
Ethereum [coin_data_widget ticker=”ETH”] ETFs experienced four consecutive days of net outflows totaling $637.5 million from Oct. 30 through Nov. 4, according to Ethereum ETF flow data. The Nov. 4 withdrawal of $219.4 million marked the largest single-day outflow in the streak.
Davis explained that institutions primarily invest in Bitcoin, Ethereum, and Solana, causing these assets to absorb heavier selling pressure than other altcoins. He cited $700 million in combined outflows from Bitcoin [coin_data_widget ticker=”BTC”] and Ethereum ETF products on Nov. 4. The analyst noted Ethereum is trading below its 200-day exponential moving average with an oversold daily RSI reading. Davis pointed to structural liquidity deficits affecting crypto markets as a contributing factor to the institutional de-risking.
Photo Credit: TradingView / ETH/USD
Solana [coin_data_widget ticker=”SOL”] ETF inflows slowed to $14.9 million on Nov. 4, bringing total net inflows to $284 million since launch. The token dropped to $145 overnight and entered oversold territory on its RSI indicator, according to Davis.
Photo Credit: TradingView / SOL/USD
Davis attributed Zcash’s rally to a narrative being promoted by prominent figures, including Arthur Hayes and Barry Silbert. He stated the asset is being “willed into existence” by influential supporters despite broader market weakness.
DeFi Security Breaches Compound Market Pressure
Three DeFi protocols suffered security incidents on Nov. 3-4. Balancer’s $116.6 million exploit and Stream Finance’s $93 million loss led the breaches, with Moonwell also reporting an oracle manipulation attack. Davis cited the incidents as adding to market panic.
Bitcoin tested the 50-week exponential moving average around $103,000. Davis stated a weekly close above this level is necessary to maintain bullish market structure. He noted that the ongoing US government shutdown is restricting Treasury General Account liquidity flows into the financial system, referencing an analysis of the halted Quantitative Tightening impacts.
