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Privacy Coins Face Regulatory Scrutiny as Zcash Surpasses $300

Privacy Coins Face Regulatory Scrutiny as Zcash Surpasses $300

Bitget-RWA2025/10/27 02:04
By: Bitget-RWA
- Zcash (ZEC) surged past $300 after BitMEX co-founder Arthur Hayes set a $10,000 price target, boosting privacy-focused crypto demand. - Zcash's zk-SNARK technology and rising shielded transactions (30% anonymized) highlighted its appeal amid privacy-centric trends. - Grayscale launched a Zcash Trust while BlackRock withdrew crypto assets, reflecting divergent institutional strategies and regulatory skepticism. - Privacy coins like Monero outperformed Shiba Inu as investors prioritized utility, though reg

Zcash (ZEC) experienced a dramatic one-day increase of more than 30% after Arthur Hayes, BitMEX’s co-founder, reignited excitement in the market by predicting the coin could reach $10,000. This bold forecast fueled renewed interest in privacy-centric cryptocurrencies. Hayes made his prediction in a widely shared social media post, highlighting Zcash’s potential to achieve a four-digit price as demand for privacy solutions in finance grows. By the end of October 2025,

had soared to $332.52, representing a 750% surge over the previous three months and briefly surpassing its previous record of $305, as reported by .

Hayes’ backing, which has often influenced crypto trends, brought attention to Zcash’s innovative zero-knowledge proof (zk-SNARK) technology that allows for private transactions. Blockchain data showed a notable increase in shielded

coins, rising from 3.82 million to 4.864 million during October 2025, with nearly 30% of all ZEC now anonymized, according to . This development mirrored a wider movement: privacy coins such as Monero (XMR) also saw increased interest, overtaking (SHIB) in market value as investors favored practical use cases over speculation, as noted in .

Privacy Coins Face Regulatory Scrutiny as Zcash Surpasses $300 image 0

The Zcash price rally aligned with increased institutional involvement. Grayscale, a leading digital asset manager, introduced a Zcash Trust in October 2025, and the asset was listed on the Hyperliquid exchange, enhancing its liquidity. Analysts pointed to an upcoming Zcash halving as a possible driver, drawing parallels to Bitcoin’s historical price surges. However, not everyone shared this optimism. Barry Silbert, CEO of Digital Currency Group, dismissed the likelihood of a BlackRock Zcash ETF, citing regulatory barriers due to Zcash’s privacy features, which pose challenges for anti-money laundering (AML) compliance, reflecting

.

Shifting market forces further fueled Zcash’s rise. Institutional activity revealed contrasting strategies: Grayscale invested $138 million in

and , while BlackRock pulled $97.63 million out of crypto holdings, indicating differing approaches to the market, as detailed in . Meanwhile, regulatory changes under U.S. President Donald Trump provided additional context, as his administration granted pardons to crypto industry figures such as Binance’s Changpeng Zhao and BitMEX’s Arthur Hayes, signaling a supportive attitude toward the sector, according to .

Technical analysis pointed to a consolidation period for Zcash, with the Relative Strength Index (RSI) approaching overbought territory. Traders identified $281.35 as a crucial support level; a drop below this could lead to a pullback, while a move above the $290–$305 range might drive ZEC toward $360, based on the earlier Coinotag report. Despite doubts, advocates believe privacy coins are gaining acceptance as blockchain technology matures. “Privacy is essential for worldwide adoption,” said Mert Mumtaz of Helius Labs, emphasizing that zero-knowledge proofs could transform financial independence, according to

.

With Zcash’s market capitalization exceeding $6 billion, the debate between privacy and regulatory oversight has become more intense. While Hayes’ $10,000 projection is still seen as ambitious, the latest rally highlights a changing environment where privacy-oriented cryptocurrencies are gaining prominence. Investors are now considering the trade-off between innovation and regulation, a balance that will likely influence the future direction of the crypto industry.

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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