Zcash Buyers Absorb The 10% Profit-Booking Hit - Breakout Attempt Back On Track?

Zcash (ZEC) buyers absorbed a 10% profit-booking hit as the asset traded through a key support level, with institutional demand continuing to stabilize the price. Cypherpunk Technologies expanded its Zcash holdings to 290,062.67 ZEC, now controlling about 1.76% of the circulating supply according to reports.

The move aligns with a broader strategy of building a long-term position in Zcash and scaling privacy-related applications. Will McEvoy, Cypherpunk’s CIO, emphasized the strategic importance of this move: “As our Zcash position grows, we are well positioned for a market that is repricing the societal importance of privacy.”

Bitwise, a major player in the crypto asset management sector, filed for 11 new crypto ETFs with the U.S. Securities and Exchange Commission (SEC), including exposure to Zcash and other altcoins like Aave and Ethena. The filing indicates growing institutional interest in niche crypto assets, although Bitcoin continues to dominate the market with roughly 60% share according to market data.

Why Did Zcash Buyers Absorb a 10% Profit-Booking Hit?

Zcash experienced a profit-booking hit after reaching a key price level, triggering a 10% correction in the short term. Institutional buyers, however, have continued to absorb the dip, maintaining upward pressure on the asset. Cypherpunk’s recent purchase of 56,418.09 ZEC for roughly $29 million at an average price of $514.02 per token exemplifies this trend according to reports.

Analysts attribute the strength of Zcash buyers to growing demand for privacy-focused tokens in an increasingly regulated digital landscape. The cumulative average price for ZEC held by Cypherpunk stands at $334.41, indicating a long-term strategic investment approach. This strategy contrasts with short-term traders who often react to market volatility.

How Did Markets Respond to Bitwise’s ETF Filings?

The market response to Bitwise’s filing for 11 new crypto ETFs was mixed, with Bitcoin maintaining a dominant market position despite shifting interest toward altcoins. While the filings represent a positive development for altcoin exposure, Bitcoin’s dominance remains at 59.70%, suggesting that an altcoin season is still unlikely according to market analysis.

Bitwise’s ETFs aim to offer investors exposure to altcoins such as Zcash, Aave, and Ethena, with the funds expected to be approved by the SEC by March 16, 2026. The firm plans to allocate 60% of the funds directly to the targeted altcoins and the remainder to crypto-focused ETPs and derivatives.

The filings signal a growing acceptance of altcoins by institutional investors, yet the current market structure remains heavily weighted toward Bitcoin. This dynamic is expected to persist into early 2026 unless Ethereum or other altcoins show stronger momentum against Bitcoin.

What Are Analysts Watching Next for Zcash?

Analysts are closely watching Zcash’s price action as it navigates potential corrections and breakout attempts. Eric Van Tassel, a well-known analyst, warned that ZEC might undergo a pullback to around $400 before any sustainable move higher. This view is based on the observation that rising wedges often create liquidity traps for traders according to technical analysis.

On the other hand, former BitMEX CEO Arthur Hayes and Helius co-founder Mert Mumtaz remain bullish on Zcash, citing its privacy features and potential for a $1,000 move. They suggest that behind-the-scenes liquidity from Fed tools could favor privacy tokens, particularly in a regulatory environment that increasingly scrutinizes digital assets.

The growing interest in Zcash and other privacy-focused tokens is also being driven by institutional players seeking to diversify their crypto portfolios. This trend is expected to continue as the demand for digital confidentiality grows in response to rising digital surveillance concerns.

Overall, Zcash remains underpinned by strong institutional demand and a growing narrative around the importance of privacy in the digital economy. However, investors should remain cautious of potential pullbacks and focus on long-term fundamentals as the market continues to evolve.