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Bitcoin Updates: Crypto Shifts Toward Privacy—Zcash Gains Momentum While Bitcoin Welcomes Institutional Investors

Bitcoin Updates: Crypto Shifts Toward Privacy—Zcash Gains Momentum While Bitcoin Welcomes Institutional Investors

Bitget-RWA2025/11/05 01:58
By:Bitget-RWA

- Zcash's 700% price surge to $388 highlights growing demand for privacy-focused crypto, surpassing Monero with a $6.2B market cap. - Technological upgrades like Zashi wallet's cross-chain swaps and Hyperliquid's $115M ZEC contracts boost Zcash's usability and liquidity. - Analysts like Will Owens frame Zcash as Bitcoin's "spiritual successor," emphasizing cypherpunk principles against institutionalized Bitcoin adoption. - Regulatory risks (EU's 2027 privacy coin ban) and skepticism about rally sustainabil

The dramatic 700% rise in Zcash's value has sparked discussions about a possible transformation within the crypto community, with

crediting the surge to increasing interest in privacy and a pushback against Bitcoin's growing institutional presence. The privacy-centric cryptocurrency, which recently soared to an eight-year peak of $388, now boasts a $6.2 billion valuation, overtaking Monero as the top privacy coin, according to a . Will Owens, an analyst at Galaxy Research, states in a that Zcash's commitment to "cypherpunk values" stands in contrast to Bitcoin's increasing dependence on centralized entities such as ETF custodians, positioning Zcash as a philosophical successor to Satoshi Nakamoto’s original ideals.

Recent technological progress has further fueled Zcash’s momentum. The Electric Coin Company has upgraded its Zashi wallet, now supporting cross-chain swaps and private transactions through Near’s Intents system, broadening its shielded pool, as highlighted by TradingView. At the same time, Hyperliquid’s addition of

perpetual contracts has increased market liquidity, with open interest climbing to $115 million as of October 30, a milestone also mentioned in the Galaxy Research report. These advancements are part of a wider "privacy season," where investors are shifting funds into assets like , , and Railgun, a trend noted in the Galaxy Research analysis.

Bitcoin Updates: Crypto Shifts Toward Privacy—Zcash Gains Momentum While Bitcoin Welcomes Institutional Investors image 0

Key voices in the digital asset sector have amplified this narrative. Arthur Hayes, co-founder of BitMEX, has made striking forecasts, suggesting ZEC could hit $400—or even $10,000—describing its momentum as "unstoppable" in a

. Although these projections are speculative, they underscore a growing conviction that Zcash’s zk-SNARK-based privacy offers a strong alternative to Bitcoin’s open blockchain. Edward Snowden has previously pointed out Bitcoin’s lack of privacy as a major weakness, a view shared by those who believe Zcash is closer to the original vision of anonymous digital money, as discussed in a .

Nevertheless, obstacles remain. Privacy coins continue to face heavy regulatory pressure, with the European Union planning to prohibit them by mid-2027 under new anti-money laundering regulations, as outlined in a

. Skeptics also question whether Zcash’s rally is sustainable, suggesting it could be fueled by large holders or social media hype rather than genuine user growth, a point raised in the Galaxy Research report. Despite these uncertainties, Owens observes that more users are choosing shielded transactions, expanding Zcash’s anonymity set, as noted in the same Galaxy Research analysis.

The ongoing discussion about Zcash’s future centers on whether privacy will become a widespread priority. While Bitcoin’s $2 trillion market cap and institutional backing have cemented its status, Zcash supporters view it as a specialized leader in the changing crypto landscape. As Owens concludes, the recent surge has prompted the market to "revalue privacy," signaling a cultural change that may reshape the function of digital cash in an age of increasing surveillance.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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