Institutional Demand and Geopolitics Fuel Crypto Divergence: Privacy Coins Rise, Meme Tokens Fall

Zcash (ZEC) surged to a weekly high amid renewed interest in privacy-focused cryptocurrencies, driven by institutional demand and short liquidations. The token climbed over 340% in October, reaching $269-the highest level since 2022-after Grayscale announced a ZEC fund, granting institutional investors access to the asset. Short liquidations totaled $50 million during the week, with $6.7 million in daily liquidations recorded on October 10 Zcash Price Prediction: Wyckoff Theory Suggests ZEC Crash^[1]. Technical analysis indicates ZEC entered the markup phase of the Wyckoff Theory, characterized by high demand and overbought conditions (RSI of 90). Analysts caution that a retest of the $79 support level could confirm a continuation pattern before potential distribution and markdown phases Zcash price prediction as ZEC surges and why it may …^[2].

Tether Gold (XAUt) emerged as a top performer, gaining 2.72% to $4,030, reflecting safe-haven demand amid U.S.-China tariff tensions. Tokenized gold's market capitalization surpassed $2 billion, with weekly trading volumes for Paxos Gold (PAXG) and XAUt rising 900% and 300%, respectively. Investors rotated into gold-backed assets as Bitcoin and other cryptocurrencies faced a $19 billion liquidation event following Trump's 100% tariff announcement on Chinese imports Tokenized Gold Surges Above $2B Market Cap as Tariff Fears …^[3]. XAUt's resilience aligns with broader macroeconomic trends, including central bank gold purchases and a weakening U.S. dollar, which bolstered its appeal as a hedge against inflation and geopolitical risks Crypto Market’s Weekly Winners and Losers – ZEC, XAUt, 2Z, PUMP^[4].

Among losers, DoubleZero (2Z) plummeted 50% amid weak on-chain activity and failed attempts to break key resistance levels. The token's daily chart showed four consecutive weekly lows, with bulls unable to flip the $0.50 resistance into support. Analysts attribute the decline to a lack of dip-buying interest and bearish sentiment in a risk-off market Pump.fun [PUMP] – Meme Token Had Its Worst Week^[5]. Similarly, Pump.fun (PUMP) fell 41% to $0.002764, marking its largest weekly drop since early Q3. Despite a 35% rebound in late October, crypto analyst Ali Martinez predicted further declines to $0.00232, citing bearish chart patterns and broader market weakness Crypto Analyst Predicts More Decline for PUMP: Targets $0.00232^[6]. PUMP's price action remains volatile, with technical indicators like the Bull Bear Power (BBP) and MACD showing mixed signals between short-term recoveries and long-term bearish momentum PUMP Token Price Spikes 35% — Is the Correction Finally Over?^[7].

The crypto market's performance underscores diverging narratives between privacy coins and meme tokens. ZEC's rally reflects growing demand for privacy solutions in a regulatory landscape increasingly focused on transparency, while PUMP and 2Z highlight the fragility of speculative assets during macroeconomic shocks. Institutional adoption, as seen in Grayscale's ZEC fund and ICE's $2 billion investment in Polymarket, continues to shape market dynamics, even as retail-driven volatility persists.