Privacy Coins Challenge Regulation as Zcash Soars Past $300

Zcash (ZEC) surged over 30% in a single day after BitMEX co-founder Arthur Hayes reignited market frenzy with a bold $10,000 price target, sparking a broader revival of privacy-focused cryptocurrencies. The move followed Hayes' public "vibe check" on social media, where he cited Zcash's potential to reach four figures amid growing demand for financial privacy tools. By late October 2025, ZEC had climbed to $332.52, marking a 750% rally over three months and briefly testing its all-time high of $305, according to a BeinCrypto article.

Hayes' endorsement, a recurring catalyst in crypto markets, drew attention to Zcash's unique zero-knowledge proof (zk-SNARK) technology, which enables confidential transactions. On-chain data revealed a surge in shielded Zcash tokens, rising from 3.82 million to 4.864 million in October 2025, with nearly 30% of the total supply now anonymized, per Coinotag data. This shift aligns with broader trends: privacy coins like Monero (XMR) also gained traction, overtaking Shiba Inu (SHIB) in market capitalization as investors prioritized utility over speculative assets, according to a Coinotag report.

The Zcash rally coincided with institutional activity. Grayscale, a major crypto asset manager, launched a Zcash Trust in October 2025, while exchange Hyperliquid listed the asset, boosting liquidity. Analysts highlighted an upcoming Zcash halving event as a potential catalyst, mirroring Bitcoin's historical price patterns. However, not all were optimistic. Digital Currency Group CEO Barry Silbert dismissed the prospect of a BlackRock Zcash ETF, citing regulatory hurdles due to the coin's privacy features, which conflict with anti-money laundering (AML) requirements, reflecting Silbert's skepticism.

Market dynamics further amplified Zcash's momentum. Institutional flows showed contrasting movements: Grayscale deposited $138 million in Bitcoin and Ethereum, while BlackRock withdrew $97.63 million in crypto assets, reflecting divergent macro strategies, according to a Bitcoinsistemi piece. Meanwhile, regulatory shifts under U.S. President Donald Trump added context, as his administration pardoned crypto figures like Binance's Changpeng Zhao and BitMEX's Arthur Hayes, signaling a pro-industry stance, as Decrypt reported.

Technical indicators suggested a consolidation phase for Zcash, with the Relative Strength Index (RSI) nearing overbought levels. Traders eyed a critical support at $281.35; a breakdown could trigger a correction, while a breakout above $290–$305 might propel ZEC toward $360, according to the earlier Coinotag piece. Despite skepticism, proponents argue that privacy coins are gaining legitimacy as blockchain adoption matures. "Privacy is non-negotiable for global adoption," said Mert Mumtaz of Helius Labs, noting that zero-knowledge proofs could redefine financial sovereignty, per a Coinotag analysis.

As Zcash's market cap surpassed $6 billion, the debate between privacy and regulatory compliance intensified. While Hayes' $10,000 target remains ambitious, the recent surge underscores a shifting landscape where privacy-focused assets are no longer sidelined. Investors now weigh the balance between innovation and oversight, with outcomes likely to shape the next phase of crypto's evolution.