Zcash price is in one of the most remarkable bull runs in the crypto market. ZEC jumped from below $50 in October to $700 today, and some analysts and investors expect the bull run to continue.
Zcash surge was triggered by an announcement by Grayscale that it would launch a ZEC fund. According to its website, the Grayscale Zcash Trust has now accumulated over $150 million in assets.
ZEC price has also jumped as some popular investors made bullish bets on it. For example, Arthur Hayes, the founder of BitMex, predicts that it will jump to $1,000. This means that it needs to jump by almost 30% from the current level.
READ MORE: Why is Crypto Going Up as the Stock Market Sinks?
Meanwhile, Jake Kennis, a Nansen analyst, believes that the surge is also driven by its technology, which he believes it is a necessity, rather than a feature. That’s because Zcash’s technology allows users to select whether their transactions are private or available on a public ledger. He said:
“On the technical front, Zcash’s zero-knowledge architecture, the Zashi wallet enabling shielded transfers, and Solana integration all improve usability and accessibility. Its Bitcoin-like tokenomics, a fixed 21M supply, Proof-of-Work consensus, and upcoming halving that will reduce new issuance, combined with zk-SNARK-enabled privacy, position it as an “encrypted Bitcoin.”
Zcash price is also jumping as traders wait for the upcoming halving, which will reduce the block rewards from 3.125 ZEC to 1.5625 tokens. Halving aims to reduce a coin’s inflation over time, and it is common for a coin to rally ahead such an event.
Technicals also explain the ongoing surge. One of the most important concepts is the Wyckoff Theory, which identifies the four stages that assets go through. ZEC remained in an accumulation phase for months and is now in an extended markup phase.
Therefore, the risk is that it will go through a sharp reversal once the halving event happens. Such a move will likely trigger a sell the news event that will lead to a downside as it enters the distribution and markup phases. READ MORE: Cardano Price Forms Risky Patterns as Hoskinson Bets on Leios and Midnight
