The recent announcement from Arthur Hayes has thrust Zcash and the entire privacy coin sector into the institutional spotlight. The BitMEX co-founder revealed that Zcash (ZEC) is now the second-largest liquid holding in his family office’s portfolio, trailing only Bitcoin. This high-profile endorsement comes amid a staggering price rally, with ZEC surging over 700% since September and breaking into the top 20 cryptocurrencies by market cap.
The Resurgence of a Privacy Pioneer
Zcash’s dramatic comeback is driven by a powerful combination of narrative and technology. There’s a growing organic movement, described by commentators as having “Bitcoin vibes all over again”, where cypherpunks and investors are uniting around the cause of financial privacy, which they see as a missing piece in Bitcoin’s offering.
Technically, Zcash has evolved significantly. It uses advanced zero-knowledge proofs to enable fully encrypted transactions on its blockchain. Recent upgrades have made private transactions more accessible; the Zashi wallet, for instance, now makes shielded transfers the default for users. Furthermore, with a fixed supply of 21 million coins and a halving event scheduled for mid-November 2025, Zcash presents a compelling scarcity narrative similar to Bitcoin’s, potentially tightening available supply further.
Market Impact and Future Trajectory
Hayes’ bullish stance, including a long-term price target of $10,000 for ZEC, has undoubtedly fueled market momentum and drawn scrutiny to the asset. This has helped Zcash surpass Monero to become the largest privacy-focused cryptocurrency by market capitalization. The entire privacy coin sector has benefited from this attention, with assets like Dash and Horizen also posting significant gains.
However, the journey is not without its cautions. The price has experienced extreme volatility, facing rejection at key resistance levels ahead of its halving. While the long-term sentiment is bullish, with some algorithmic models raising their price target to $800 by the end of 2025, analysts warn of potential short-term pullbacks. Samson Mow, a prominent Bitcoin advocate, has even cautioned investors to consider taking profits from ZEC and moving into Bitcoin.
Arthur Hayes’ investment is a significant bellwether for institutional interest in digital privacy. While Zcash offers a powerful technological proposition, its path will likely be marked by the volatility typical of high-conviction crypto assets. The market will be watching closely to see if its technical upgrades and growing adoption can sustain this remarkable momentum.
