Zcash ZEC Soars on Cypherpunk Supply Target and Arthur Hayes Prediction

• Cypherpunk Technologies aims to control 5% of Zcash's total supply, accumulating 290,062 ZEC worth $152 million.
• ZEC surged over 800% in 2025 as privacy coins gained favor and shielded transactions locked 30% of supply.
• Whale accumulation slashed tradable supply, with top 100 addresses controlling 66% of ZEC.
• Arthur Hayes forecasts a $1,000 price target citing privacy demand and institutional inflows.

Zcash (ZEC) rallied to $537 this week as institutional accumulation and shrinking supply intensified bullish sentiment. Cypherpunk Technologies' disclosure of its 5% supply target mirrors MicroStrategy's Bitcoin strategy but focuses on privacy-preserving assets. This comes amid ZEC's 80% December surge and Arthur Hayes' $1,000 prediction, highlighting privacy coins' 16% market outperformance.

Why Is Cypherpunk Targeting 5% of Zcash?

Cypherpunk purchased 56,418 ZEC for $29 million in December, boosting holdings to 290,062 tokens. CEO Will McEvoy called financial privacy "insanely undervalued" in today's surveillance economy, justifying the accumulation strategy. The Nasdaq-listed firm targets 5% ownership to influence Zcash's governance and treasury decisions long-term. Its $334 average cost per token yields over 50% unrealized gains at current prices.

What’s Driving Zcash’s Supply Squeeze?

Shielded addresses now hold 25-30% of ZEC supply, reducing circulating tokens. Whale activity intensified with $31 million withdrawn from Binance alone, while top wallets control 66% of the network. That liquidity crunch coincided with Zcash's late-2025 halving, which reduced new token issuance. Institutional demand grew through Grayscale's dedicated fund and Cypherpunk's public accumulation targets.

How High Can Zcash Go? Arthur Hayes Weighs In

Ex-BitMEX CEO Arthur Hayes predicts ZEC could reach $1,000 by mid-2026. His forecast hinges on three factors: privacy narrative strength, shielded supply growth, and institutional adoption post-halving. Technical analysts note ZEC's breakout above $500 signals bullish momentum continuation. Still, regulatory pressure on privacy coins presents downside risks if enforcement actions escalate.