Bitcoin briefly fell below $60,000 on Friday, "extending its weekly loss to nearly 20% and threatening to fall below $59,000," reports CoinDesk. Crypto was also hit by a 40%-plus plunge in Zcash after Shielded Labs disclosed a years-old bug that could have allowed undetected counterfeit ZEC creation. From the report: Now, with stocks in plunge mode -- the Nasdaq down nearly 4% on Friday -- bitcoin finds itself perfectly correlated. "Short term, Bitcoin feels like swallowing broken glass," wrote Jeff Swanson Friday. "The chart goes up. It goes down. It makes grown men cry into their Robinhood accounts and CNBC anchors smugly declare the funeral, for the eleventh time." "Here's what uncomfortable people don't understand: the discomfort is the yield. Every paper-handed panic seller is handing their future to someone with a longer time horizon and a colder storage device."

[...] Earlier, Shielded Labs, a nonprofit developer on the privacy token system, disclosed a critical vulnerability in Zcash's (ZEC) Orchard privacy pool that could have threatened the integrity of the token's supply. The vulnerability, if exploited, could have allowed an attacker to create an unlimited number of counterfeit ZEC tokens, completely undetected. "Think of it as someone secretly gaining access to the Federal Reserve's dollar printing press, except in this case, even the Fed wouldn't be able to tell these extra dollars were printed," wrote Omkar Godbole. Importantly, the vulnerability was discovered with help from Anthropic's recently released Opus 4.8 AI model, raising difficult questions for the entire crypto industry. More to come on that. ZEC is now down 42% over the past 24 hours. On Wednesday, the Zcash Foundation said: "The vulnerability was caught before any known exploitation occurred. There is no evidence of unauthorized value creation. Zcash's turnstile mechanism (which tracks the total ZEC balance across all value pools) confirmed that the total supply remained intact throughout. User privacy was not affected. Sapling and transparent transactions continued operating normally throughout the incident."

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