ETH falls to 13-month low on Zcash bug news and Bitcoin drop to sub-$60K: Is $1.4K next?

Written by Marcel Pechmanstaff writerReviewed by Ray Salmondstaff editorWritten by Marcel Pechmanstaff writerReviewed by Ray Salmondstaff editorETH falls to 13-month low on Zcash bug news and Bitcoin drop to sub-$60K: Is $1.4K next?MarketsPublishedJun 5, 2026ETH price crashed below $1,600 as a vulnerability in Zcash emerged and Bitcoin sold off below $60,000 for the first time in months. Key takeaways:Ether derivatives metrics flip to a heavily bearish bias as cascading liquidations cut off a relief bounce. A critical ZCash bug discovered by AI triggers widespread fears of contagion, driving a contraction in Ethereum TVL.Ether (ETH) plummeted to a 13-month low of $1,540 on Friday, following the bearish trend across the broader cryptocurrency market. Traders now fear a deeper price correction, given weakness in ETH derivatives metrics and heightened risk after a bug was found in the Zcash blockchain.ETH perpetual futures annualized funding rate. Source: LaevitasThe Ether futures annualized funding rate flipped negative on Friday, indicating increased demand for short positions. Even with ETH trading 67% below its all-time high from August 2025, confidence among bulls has been shattered after $1.28 billion in leveraged longs were liquidated over 5 days.ETH options premium put-to-call ratio at Deribit. Source: LaevitasDemand for downside price protection surged as the Deribit ETH options put-to-call premium spiked to 3.7 times on Friday. The indicator has consistently shown excess demand for put (sell) options since Monday. Low conviction among holders fuels uncertainty, giving bears an easy path to take control.ETH price followed Zcash: Why?The severe decline in Ethereum network Total Value Locked (TVL) to its lowest since February 2024 has also negatively impacted trader sentiment. Smaller deposits in decentralized applications (DApps) tend to reduce ecosystem revenue, ultimately reducing demand for ETH use in smart contracts.Ethereum network DApps Total Value Loc…

ETH falls to 13-month low on Zcash bug news and Bitcoin drop to sub-$60K: Is $1.4K next?

Coins in this story

Related stories

Zcash Bug Crisis Shows Privacy Cuts Both Ways, Experts Say

Strategy Shares Fall to 4-Month Low as STRC Dips and Bitcoin Sinks Under $60K

Anthropic Is Helping the NSA Hack China. It Also Wants Everyone to Pause AI