CoinDesk
Zcash jumped 23% to about $1,369 over the past 24 hours as the broader crypto market rallied into Asian morning hours Thursday, defying the Federal Reserve's first interest-rate hike since 2023. Bitcoin edged up less than 1% to roughly $76,258, while Solana gained nearly 3% to just below $100, and BNB, HYPE, ether, XRP and dogecoin added between 1% and 3%.
Why it matters
The Fed raised its benchmark rate by 25 basis points to a range of 3.75% to 4%, but its median projection put the policy rate at 4.1% at the end of both 2026 and 2027, consistent with just one further quarter-point increase this year. Investors read the dot plot as the end of a tightening cycle rather than the start of one. S&P 500 futures rose 0.6% and Nasdaq 100 futures gained 0.7%, while the two-year Treasury yield, sensitive to Fed expectations, eased two basis points to 4.71% after touching its highest since 2024 the prior session.
Zcash's surge came with explicit institutional backing. Matt Huang, co-founder of crypto investment firm Paradigm, disclosed on X that his firm owns ZEC and described the token as a private complement to Bitcoin. Huang supported continued funding for Zcash developers while arguing that coin-holder votes should be combined with other governance mechanisms. ZEC holders recently backed proposals for faster transactions and bitcoin-style halvings.
Market impact
The 23% move is the sharpest single-day jump for ZEC in months, and it lands against a backdrop where privacy tokens have lagged through the broader rally that took bitcoin past $76,000. A Paradigm-backed endorsement carries outsized weight in that context. Jeff Ko, chief analyst at mining pool ViaBTC, said Wednesday's hike was largely priced in and that markets are reassured the Fed is signalling no aggressive tightening cycle ahead.
Altcoin rotation is the read that matters for portfolio positioning. Solana and BNB gaining 2-3% on a day bitcoin barely moves suggests capital is hunting beta, with privacy tokens attracting renewed attention after years of regulatory headwinds.
Frequently asked questions
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How much did Zcash gain and what was its price?
Zcash surged 23% to about $1,369 over the past 24 hours as the broader crypto market rallied despite the Federal Reserve's first interest-rate hike since 2023.
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Why did crypto rally after the Fed's rate hike?
The Fed raised rates 25 basis points to a range of 3.75% to 4%, but its median projection put the policy rate at 4.1% at the end of 2026 and 2027, suggesting only one more quarter-point hike this year. Investors read the dot plot as signalling the end of a tightening cycle.
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Why is Paradigm's disclosure about ZEC significant?
Paradigm co-founder Matt Huang disclosed on X that his firm owns ZEC and called the token a private complement to Bitcoin. Huang also backed continued funding for Zcash developers and argued coin-holder votes should be combined with other governance mechanisms.
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How did other major cryptocurrencies perform?
Bitcoin edged up less than 1% to about $76,258, Solana gained nearly 3% to just below $100, and BNB, HYPE, ether, XRP and dogecoin added between 1% and 3% over the same 24-hour window.
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What proposals did Zcash holders recently back?
Zcash holders approved proposals to make payments faster while keeping bitcoin-style halvings to the creation of new coins, a feature the chain shares with Bitcoin.
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