Bitcoin News Today: Privacy Tech Adoption Fuels Zcash's 496% Surge Despite Regulatory Hurdles

Zcash (ZEC) has surged nearly 496% over the past three months, driven by rising adoption of its privacy shielding technology and a spike in on-chain activity. The privacy-focused cryptocurrency now trades near $235.59, with bulls eyeing a breakout above the $300 threshold as retail and institutional demand converge, according to a Bitget report.

The catalyst for ZEC's rally lies in its unique zero-knowledge proof (ZKP) shielding mechanism, which allows users to transact between transparent and private pools. Over 4.84 million ZEC tokens—nearly 30% of the total supply—have been shielded, reflecting growing demand for privacy-oriented transactions, the Bitget report notes. This surge in shielding has, in turn, increased the value of unshielded ZEC as users seek to access the transparent layer for everyday transactions while maintaining privacy.

Retail investor enthusiasm has further fueled the uptrend. Futures open interest (OI) for ZEC has jumped 17.05% in a single day to $307.78 million, while the OI-weighted funding rate has improved from -0.0197% to -0.0024%, signaling a reduction in short dominance and a shift toward risk-on positioning, the Bitget report adds. The cryptocurrency's performance has outpaced broader market volatility, with ZEC's gains outperforming Bitcoin and Ethereum during a period of heightened macroeconomic uncertainty.

Technically, Zcash appears poised for a critical breakout. On the 4-hour chart, ZEC has rebounded off the 20-period Exponential Moving Average (EMA) and is testing the $300 level—a key psychological resistance. A sustained close above this level could trigger a retest of the 52-week high of $304.45, potentially sparking further speculative buying, per the Bitget report.

Despite the bullish momentum, challenges remain. Centralized exchanges have historically restricted ZEC listings due to regulatory scrutiny over its privacy features, limiting broader adoption, the Bitget report observes. Additionally, macroeconomic risks, including U.S.-China trade tensions and global market instability, could dampen long-term growth.

The broader crypto ecosystem is also experiencing structural shifts. Binance's Alpha 2.0 platform, for instance, reported a record $10.2 billion in daily trading volume in October 2025, according to a Coinotag article. Meanwhile, Bitcoin's liquidity has tightened, with long-term holders accumulating over 373,000 BTC in a single month, reducing sell-side supply to a seven-year low, the Coinotag article reports. These dynamics highlight a maturing market where privacy-focused assets like ZEC may gain traction amid evolving institutional and retail demand.

For now, Zcash's bulls remain optimistic. A move above $300 would mark a 12.67% gain from current levels, but sustained adoption of its shielding technology and institutional backing could drive the coin toward $320 or higher. As the crypto market continues to diversify, ZEC's unique position in the privacy niche may prove critical in attracting investors seeking both utility and security, the Bitget report concludes.

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