Privacy Coins collectively pulled back over 15%, experts say: has fallen from a safe-haven asset to high Beta altcoin.

[Coin World] The market for Privacy Coins is a bit fierce, falling along with the overall market. In the past day, ZCash has fallen by 8.5%, Monero has shrunk by 5.4%, Dash has also dropped by 3.9%, and the entire zone has evaporated by 15.4%.

Interestingly, analysts have found that Privacy Coins have now completely changed their nature - previously, they were seen as safe-haven assets, but now they are tightly bound to the fate of Bitcoin, influenced by the same macro factors. AMLBot's CEO Slava Demchuk put it more bluntly: coins like ZCash and Dash are largely transparent in on-chain transactions, “the hype is about the concept, not actual usage,” so their performance is not much different from those high Beta altcoins.

Jamie Elkaleh, the Chief Marketing Officer of Bitget Wallet, also noted that since the entry of ETFs and the influx of large capital, privacy assets have increasingly resembled the more volatile high-risk varieties in the entire ecosystem.

Demchuk reviewed the history and noted that Privacy Coins were able to rise back then due to three things: the progress of encryption technology itself, the regulatory pressure from the EU's “chat control”, and the genuine demand in certain regions for concerns about transparent ledgers.

As for whether it can recover later? The answers from the two experts are similar: it depends on Bitcoin's performance. If Bitcoin can stabilize at a high level and market sentiment improves, Privacy Coins may recover the recent fall—after all, historical data shows that their volatility is usually more exaggerated than Bitcoin's.