Bitcoin News Today: Crypto's Privacy Pivot: Zcash Rises as Bitcoin Embraces Institutions

Zcash's recent 700% price surge has ignited debates about a potential cultural shift in the cryptocurrency landscape, with Galaxy Digital attributing the rally to growing demand for privacy and resistance to Bitcoin's institutionalization. The privacy-focused coin, which hit an eight-year high of $388, now commands a $6.2 billion market cap, surpassing Monero to become the leading privacy token, according to a TradingView report. Galaxy Research analyst Will Owens argues in a Galaxy Research report that Zcash's adherence to "cypherpunk principles" contrasts with Bitcoin's increasing reliance on centralized intermediaries like ETF custodians, positioning it as a spiritual successor to Satoshi Nakamoto's original vision.

The momentum is fueled by technological advancements enhancing Zcash's usability. Electric Coin Company's updated Zashi wallet now enables cross-chain swaps and private payments via Near's Intents system, expanding its shielded pool, as reported by TradingView. Meanwhile, Hyperliquid's recent listing of ZEC perpetual contracts has boosted liquidity, with open interest reaching $115 million as of October 30, a point also noted in the Galaxy Research report. These developments align with a broader "privacy season," where investors are reallocating capital to assets like Zcash, Dash, and Railgun, a trend the Galaxy Research piece highlights.

Prominent figures in the crypto space have amplified the narrative. BitMEX co-founder Arthur Hayes has made bold predictions, declaring ZEC could reach $400 — and even $10,000 — citing its "unstoppable" trajectory in a LookOnChain post. While such forecasts are speculative, they reflect a growing belief that Zcash's zk-SNARK-powered privacy offers a compelling alternative to Bitcoin's transparent ledger. Edward Snowden previously criticized Bitcoin's lack of privacy as a fundamental flaw, a sentiment echoed by advocates who argue that Zcash better fulfills the original promise of anonymous digital cash, according to a BeInCrypto article.

However, challenges persist. Regulatory scrutiny of privacy coins remains intense, with the EU planning to ban them by mid-2027 under new AML rules, as detailed in a Motley Fool article. Critics also question the sustainability of Zcash's rally, suggesting it may be driven by whale activity or influencer hype rather than organic adoption, a concern raised in the Galaxy Research report. Despite these risks, Owens notes that Zcash's shielded transaction adoption is rising, with its anonymity set expanding as more users opt for privacy, an observation made in the same Galaxy Research analysis.

The debate over Zcash's long-term prospects hinges on whether privacy will become a mainstream demand. While Bitcoin's institutional adoption and $2 trillion market cap make it an entrenched asset, Zcash's proponents see it as a niche leader in an evolving crypto ecosystem. As Owens concludes, the recent rally has forced markets to "reprice privacy," highlighting a cultural shift that could redefine the role of digital cash in an era of heightened surveillance.