Bitcoin News Today: Institutional Adoption Fuels Zcash's Privacy-Driven Surge Past $400

Zcash (ZEC) has ignited a frenzy in the cryptocurrency market, surging past $400 for the first time in its history and outpacing Bitcoin (BTC) in recent performance, according to multiple reports. The rally, fueled by Arthur Hayes's $10,000 target, has shifted investor focus toward privacy-focused assets amid broader macroeconomic uncertainties.

The privacy-centric cryptocurrency jumped 30% in 24 hours, rising from $272 to $355 following Hayes' social media post dubbing ZEC an "unstoppable train". This surge has positioned Zcash as one of the top performers in the crypto space, with its market capitalization surpassing $5 billion; the move was widely reported as soaring past $350. Hayes' prediction, rooted in ZEC's limited supply and growing institutional adoption, has sparked widespread fear of missing out (FOMO), particularly among retail traders, according to a recent price analysis.

Institutional interest in Zcash has also gained momentum, with Grayscale's Zcash Trust (ZCSH) managing $151.6 million in assets as of October 31. The trust, which offers regulated exposure to the privacy coin, has benefited from rising demand for digital assets that prioritize transaction confidentiality. Zcash's technology, built on zero-knowledge proofs (zk-SNARKs), allows users to conduct either transparent or fully shielded transactions, concealing sender, receiver, and amount details.

The Zcash surge has contrasted sharply with Bitcoin's recent struggles. While BTC briefly hit $116,410 in early October, it has since retreated to around $114,000, pressured by macroeconomic headwinds and the Fed's 25 bps cut. Michael Saylor, CEO of MicroStrategy, has maintained a bullish stance on Bitcoin, predicting a year-end price of $150,000 and a long-term target of $20 million. However, Bitcoin's performance has been dampened by institutional caution ahead of the Fed's policy announcements and geopolitical tensions, including Trump–Xi talks.

The Zcash rally has also highlighted growing investor appetite for privacy coins as global regulators intensify scrutiny on digital asset surveillance. Zcash's shielded pool now accounts for nearly 30% of its total supply, bolstering network anonymity. Meanwhile, Bitcoin's recent price volatility has prompted some analysts to view the pullback as a mid-cycle correction rather than a trend reversal.

Despite the optimism, Zcash faces significant challenges. Regulatory concerns over privacy coins persist, with U.S. Treasury officials recently soliciting public input on privacy-enhancing technologies. Additionally, competition from other privacy-focused projects like Monero (XMR) and emerging layer-2 solutions could test Zcash's market dominance.

The broader crypto market remains in flux, with Bitcoin ETF inflows and institutional diversification strategies shaping asset allocations. BlackRock's dominance in Bitcoin ETF inflows has led investors to explore alternatives like Zcash, which now ranks among the top 10 cryptocurrencies by market capitalization.

As Zcash's price trajectory continues to defy expectations, market participants are closely watching for signs of sustainability. While Hayes' $10,000 target appears highly speculative, the coin's technological foundation and growing institutional adoption suggest it could maintain relevance in the privacy coin sector.