Zcash News Today: Zcash Surges 40% on Hayes' $1K Call, Privacy Demand and ETF Filing Fuel Momentum

Arthur Hayes, the former CEO of BitMEX, has made a bold prediction for Zcash, forecasting that the privacy-focused cryptocurrency could surge toward $1,000 in the near term. His comments, made on December 29, 2025, have reignited interest in Zcash (ZEC) and contributed to a 40% price rally since his remarks. The former derivatives exchange leader attributes the potential rise to growing demand for privacy in the digital economy and the strengthening institutional narrative around Zcash.

Zcash's shielded supply has remained stable at 23% of the total market supply since an 8% surge in early 2025, reflecting strong user adoption of its optional privacy features. This has positioned Zcash as a leading privacy coin in a market where demand for on-chain anonymity is increasing. Analysts argue that the steady usage of shielded transactions signals maturing adoption, rather than speculative hype.

Grayscale has further fueled investor confidence with its filing for a Zcash ETF on NYSE Arca under the ticker ZCSH. This move represents a significant step in integrating privacy coins into regulated financial markets, potentially broadening Zcash's appeal to institutional investors. Additionally, Cypherpunk Technologies, a firm associated with the Winklevoss twins, has announced an $18 million purchase of ZEC, aiming to acquire 5% of the supply, which has further bolstered long-term accumulation narratives.

Why the Privacy Narrative is Gaining Momentum

Privacy-focused cryptocurrencies like Zcash are seeing renewed interest due to the increasing concerns over public transaction transparency. Zcash's use of zk-SNARKs technology enables users to opt for fully shielded transactions without compromising the integrity of the blockchain. This has become a key differentiator in an ecosystem where other privacy coins, such as Monero, have also gained traction according to reports. Analysts from firms like Messari and Chainalysis note that practical use cases-such as daily payments and stablecoin transactions-make privacy solutions more relevant than ever.

The rise in privacy demand is also being driven by broader shifts in the crypto ecosystem. As users increasingly recognize the risks of exposing wallet balances and transaction histories on public blockchains, they are turning to privacy tools to protect their financial data according to data. Zcash's optional anonymity model gives users flexibility, allowing them to balance transparency and privacy depending on their needs.

Risks and Challenges for Zcash's Rally

Despite the bullish sentiment, Zcash faces regulatory headwinds. Privacy coins have long been under scrutiny by global regulators, who fear their potential misuse for illicit activities. A coordinated regulatory crackdown could stifle adoption and send ZEC prices tumbling. Analysts like Eric Van Tassel have warned that a pullback to $400 is possible in the short term, though this could clear the market of excess leverage and set the stage for a stronger rally.

Market liquidity is another concern. While Zcash's price has surged on decentralized exchanges, order books remain thin, making it vulnerable to sharp volatility. Arthur Hayes acknowledges this sensitivity, noting that leverage and liquidation events could influence price movements. He also highlights Zcash's recent halving event as a key supply-side inflection point, potentially reducing the availability of circulating liquidity.

What This Means for Investors

For investors, Zcash's trajectory reflects a broader narrative shift in the crypto market. The focus is moving from speculative trading toward practical use cases, with privacy becoming a core feature of digital transactions. The Grayscale ETF filing, coupled with institutional purchases, suggests that Zcash is being positioned as a viable asset class within traditional financial markets.

Retail investors, however, should remain cautious. The road to $1,000 is not without risks, and volatility could persist in the short term. Investors should consider both the potential rewards and the regulatory uncertainties before allocating capital. On the technical front, analysts are watching key resistance levels, with a breakout above $600 signaling the path to $750 and ultimately $1,000.

As Zcash navigates this pivotal period, its ability to maintain a balance between privacy and regulatory compliance will determine its long-term success. With a growing number of users prioritizing privacy and institutional interest on the rise, Zcash appears poised to play a central role in shaping the future of private digital finance.