Bitcoin Plunges Toward $62K as ETF Outflows End and Zcash Bug Rattles Markets

Bitcoin extended its punishing slide this week, briefly touching $62,137 on Thursday as a broad crypto selloff deepened. The drop came after Broadcom's disappointing AI chip outlook dragged the Nasdaq lower for a third consecutive session, pulling digital assets down alongside equities. Crypto is now on course for its worst weekly performance since July 2024, with Ether falling 4.6% and XRP sinking to four-month lows near $1.12.

One bright spot emerged for battered ETF investors. After 13 straight sessions of net outflows totaling roughly $4.4 billion, U.S. spot Bitcoin ETFs pulled in a net $3.05 million on Thursday, snapping the record streak. Ether ETFs also ended a 17-day outflow run on the same day, offering the first signs that institutional selling pressure may be stabilizing after weeks of relentless redemptions.

Zcash Exploit and Banks Enter Blockchain Race

A separate shock hit the altcoin market when Shielded Labs disclosed a major bug in Zcash that had gone undetected for four years. According to CoinDesk, the flaw could have allowed an attacker to mint unlimited counterfeit ZEC tokens, damaging trust in the coin's supply integrity. Zcash plummeted 38% on the news, leading broad losses across privacy-focused assets.

Meanwhile, a landmark development in traditional finance signaled the long-term direction of the industry. JPMorgan, Bank of America, and Citi announced plans to launch a shared tokenized network, a joint blockchain offensive designed to combat the growing threat of stablecoins eating into bank deposits. The move marks one of the most significant coordinated institutional bets on blockchain infrastructure from Wall Street's biggest names to date.

On the regulatory front, the SEC released a draft of its 2026-2030 strategic plan identifying digital assets and distributed ledger technology as key national priorities. The agency acknowledged that crypto industry development has significantly outpaced existing regulation and pledged to develop clear, predictable rules that allow innovation to proceed without compromising investor protection.