Privacy coins continue to attract capital inflows, with HYPE's market capitalization once surpassing Dogecoin's.

According to Mars Finance, privacy coins led the decline, erasing most of the recent gains in the crypto market. HTX data shows that ZEC fell as much as 5.2% to $619, the largest drop among the top 20 cryptocurrencies by market capitalization, but it is still up 8.2% over the past 7 days. Zcash has been the strongest performing asset in the crypto market for the past few weeks. ZEC attracted institutional attention due to Multicoin Capital's holdings disclosure earlier this month and the growing narrative surrounding privacy coins. Analysts believe that the 5% pullback after such a rally is more likely profit-taking than new selling pressure, as structural buyers of privacy coins have been accumulating rather than distributing during the rally. Hyperliquid's HYPE token briefly surpassed Dogecoin in market capitalization during Asian trading hours before retreating. HYPE fell 4% to $59, and Dogecoin (DOGE) fell 0.8% to $0.1009. HYPE is still up 23.6% over the past 7 days, driven by the launch of SpaceX's pre-IPO perpetual contract on Hyperliquid last week. A cautious tone in the market was driven by the macroeconomic backdrop. U.S. Central Command confirmed strikes against Iranian missile launch sites and vessels attempting to lay mines in the Strait of Hormuz, calling it a defensive operation. Brent crude rose nearly 2% to $98 a barrel, rebounding from Monday's 7% plunge (when London and New York markets were closed for holidays). The dollar strengthened against all G10 currencies, gold fell 0.6% to $4,545, and S&P 500 futures held a 0.6% gain after U.S. markets were closed on Monday.