Bitcoin News Today: Hayes Shifts Crypto Assets to Zcash, Eyeing Privacy-Driven Takeoff

Arthur Hayes, co-founder of BitMEX, has intensified his strategic moves in the cryptocurrency market, transferring $2.5 million in Ethereum (ETH) and related tokens to institutional market makers like Flowdesk, FalconX, and Wintermute, according to blockchain analyst EmberCN. The transactions, which included 520 ETH ($1.66 million), 2.624 million ENA tokens ($730,000), and 132,000 ETHFI ($120,000), have fueled speculation that Hayes is liquidating assets to bolster his Zcash (ZEC) position. Hayes, a vocal advocate for ZEC during the recent privacy coin rally, has repeatedly highlighted its potential to surpass Ripple (XRP) in market capitalization, declaring on X, "ZEC > XRP" and forecasting prices between $10,000 and $20,000 per coin.

Hayes' actions come amid a broader Bitcoin (BTC) downturn, with the asset sliding 25% from its all-time high since October. In a recent column, Hayes attributed the decline to a contraction in U.S. dollar liquidity rather than political or macroeconomic shifts, drawing parallels to unpredictable winter storms in Hokkaido. He emphasized that Bitcoin functions as a "free-market weathervane" for global fiat liquidity, noting that his proprietary USD Liquidity Index has fallen 10% since April, masking temporary ETF inflows and Digital Asset Treasury (DAT) activity. Hayes warned that without renewed liquidity injections, Bitcoin may need to retrace further to align with tightening conditions.

The market's recent volatility has been exacerbated by profit-taking, institutional outflows, and macroeconomic uncertainty, pushing the Fear & Greed Index to a 10-point "extreme fear" level-the lowest since late February. Despite these headwinds, Hayes remains bullish in the long term, predicting that sustained monetary easing, particularly ahead of the 2026 U.S. midterms, will reignite liquidity and drive Bitcoin higher. His analysis aligns with broader industry trends, according to Coinpedia, as central banks globally prepare over $500 billion in liquidity injections before year-end.

Hayes' Zcash advocacy has also gained traction, with the Maelstrom Fund allocating Zcash as its second-largest liquid holding after Bitcoin. He envisions ZEC capturing 10% to 20% of Bitcoin's market value in the current cycle, positioning it as "Bitcoin with full privacy". This stance contrasts with recent institutional moves, such as Harvard University's $443 million Bitcoin bet via BlackRock's IBIT, signaling a growing appetite for crypto among traditional investors.

While the immediate outlook remains cautious, Hayes' focus on liquidity dynamics and privacy-centric assets like ZEC underscores a strategic pivot in market sentiment. Analysts suggest that the current selloff may serve as a "sifting season," weeding out speculative positions and reinforcing long-term conviction. Whether Bitcoin rebounds by year-end will depend on the interplay between liquidity injections and institutional adoption-a scenario Hayes appears poised to navigate with his characteristic contrarian bets.