Zcash price is currently experiencing one of the most remarkable bull runs in the cryptocurrency market. The price of ZEC has skyrocketed from below $50 in October to $700 today, and many analysts and investors believe the upward trend will continue.
This surge in Zcash’s price was triggered by Grayscale’s announcement of a new ZEC fund. According to their website, the Grayscale Zcash Trust has now accumulated over $150 million in assets.
Another notable reason the ZEC price has jumped is that some prominent investors have 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.
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Meanwhile, Jake Kennis, a Nansen analyst, believes the surge is also driven by its technology, which he considers 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.”
The price is also going up as traders await the upcoming Zcash halving, which will reduce block rewards from 3.125 ZEC to 1.5625 ZEC. Halving aims to reduce a coin’s inflation over time, and it is common for a coin to rally ahead of 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 experience a sharp reversal once the halving event occurs. Such a move will likely trigger a sell-the-news event that might lead to downside as it enters the distribution and markup phases.
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