Zcash Surges 88% in a Month: Is It the Cycle’s Hidden Gem?

Hayes’s Bullish Outlook on Zcash

BitMEX co-founder Arthur Hayes has suggested that Zcash (ZEC) could eventually capture 10% of Bitcoin’s market capitalization, signaling a long-term bullish view on privacy coins rather than a short-term price prediction. Given ZEC’s circulating supply of approximately 16 million tokens, this scenario would imply a price in the high four-figure range, roughly $8,000–$10,000, depending on Bitcoin’s valuation.

Technical Analysis and Price Targets

From a technical perspective, traders are observing a potential cup-and-handle pattern, although this is a subjective chart formation with no guaranteed outcome. Resistance levels are often cited around $625–$650, with some speculative projections suggesting a move towards $1,000. However, this depends heavily on broader market conditions and is not a confirmed target. This target also aligns with ZEC’s 1.618 Fibonacci extension, calculated from a $745 swing high down to a $185 swing low.

Privacy Coins Outperform

ZEC is not alone in its gains. Monero and Dash, both privacy-focused tokens, have also seen positive movement over the past month. However, Zcash leads the pack. Reports indicate the coin climbed more than 80% in 30 days while the total crypto market cap barely moved, increasing just 0.2% over the same period.

In the past three days alone, ZEC added 18% while the broader market declined by 3%. This divergence has led some traders to suggest that Zcash is experiencing its own bull market.

Growing demand for financial privacy appears to be the primary driver behind this surge, attracting renewed interest in a coin that had been largely overlooked for years.

Institutional Interest and Market Sentiment

Earlier in May, hedge fund Multicoin Capital disclosed its ZEC holdings. Around the same time, Robinhood added the token to its platform, expanding its accessibility to a wider retail investor base. These developments coincided with a growing narrative around privacy coins. Hayes’s comments further amplified this trend. His estimate, based on a market cap comparison to Bitcoin, drew attention, and data indicates that ZEC’s value in Bitcoin terms has risen approximately 20.5% since his remarks.

Regardless of whether the cup-and-handle pattern materializes, Zcash has demonstrated its ability to perform independently.