Amid a general downturn in the crypto market, Zcash (ZEC) continues to rise against the trend. Arthur Hayes, co-founder of BitMEX, posted on social platform X, publicly warning traders betting on a ZEC decline that the current short-selling risk is significant.
ZEC rises against the market
Hayes summed up his assessment with a tongue-in-cheek remark: bulls choose "privacy," while bears may just get poorer. This comment, made after ZEC surged rapidly, reignited market speculation about the sustainability of this rally.
Reports show that ZEC has broken above $670. Amid widespread weakness among major assets like Bitcoin, Ethereum, and Solana, Zcash has emerged as one of the few cryptocurrencies maintaining strong momentum.
According to the data provided, ZEC rose nearly 17% today, with a cumulative gain of over 120% in the past month, and its market capitalization rank has climbed to 13th in the crypto market, continuing to close in on the top 10.
However, this rally has also been met with skepticism. The market is concerned that the current price movement may not be entirely driven by organic buying demand, and that thin liquidity combined with overly aggressive perpetual contract positions could have amplified the short squeeze effect.
Multiple catalytic effects叠加
The current ZEC price movement is not driven by a single news event. The report notes that since Zcash completed its fourth halving in November 2024, its cumulative price increase has exceeded 1200%. The change in supply dynamics was one of the earliest contributing factors.
After January 2026, the U.S. Securities and Exchange Commission concluded its nearly two-year investigation into the Zcash Foundation without taking any enforcement action. This development has improved market perceptions of the project’s compliance risks.
Subsequently, institutional allocation expectations began to rise. The report noted that institutions such as Multicoin Capital and Cypherpunk Technologies have begun large-scale accumulation. Meanwhile, Grayscale Investments has also applied to convert its existing Zcash Trust into a U.S.-listed spot ETF for privacy coins.
The market is watching to see if this momentum can be sustained.
In addition to easing regulatory pressures and ETF expectations, attention from mainstream financial media is reinforcing the market narrative. Reports note that The Wall Street Journal recently described Zcash as an asset closer to Bitcoin’s early cypherpunk ideals, further increasing its visibility among traditional finance audiences.
However, from the perspective of the trading structure, ZEC’s future movement still depends on whether buying pressure can continue. If the price continues to be driven primarily by low liquidity and short covering, volatility may remain elevated; if institutional allocation and spot demand persistently follow through, this strong rally is more likely to be sustained.