Zcash dips 4% as broader crypto market remains bearish

Key takeaways

• ZEC is still struggling under the $477-$500 zone. 
• Although momentum indicators show signs of stabilization, Zcash remains vulnerable to further downside as investors react to persistent macroeconomic uncertainty and rising rate-hike expectations. 

Zcash (ZEC) remains under pressure on Thursday as bearish sentiment continued to dominate the cryptocurrency market. ZEC is facing mounting resistance beneath the $500 mark as investors reduce exposure to risk assets.

Fed’s policy stance causes a negative market reaction

The broader crypto market weakened following remarks from Federal Reserve Chairman Kevin Warsh during his first post-meeting press conference on Wednesday.

Although the Federal Open Market Committee (FOMC) kept interest rates unchanged, in line with expectations, investors reacted negatively to the central bank’s firm commitment to bringing inflation back to its long-term 2% target. The Fed’s emphasis on price stability signaled that policymakers are not yet prepared to pivot toward monetary easing.

Warsh’s comments reinforced...