CoinDesk
Zcash rose nearly 6% to just above $1,200 in European morning hours Wednesday, the only major cryptocurrency in the green, while the rest of the market sat on its lows ahead of the Fed's rate decision.
XRP led the decliners, down more than 7% to $1.29. Ether and Solana each fell about 3%, with Bitcoin, BNB and Tron all down around 1%. Bitcoin traded just under $76,000 after dipping below $75,000 on Tuesday.
Why it matters
The slide followed the failure of the CLARITY Act in the U.S. Senate, the bill that would set which agency regulates which digital assets and has been the industry's main legislative push this year. With the regulatory path muddied and the Fed set to decide on rates later Wednesday, risk appetite across the board has thinned out.
A quarter-point hike is already priced in, so the surprise factor is limited. Bitunix analysts told CoinDesk that the size of the move matters less than what happens to long-term Treasury yields afterward.
Market impact
Zcash's counter-trend bid stands out: in a tape where every other large cap is red, money rotating into ZEC suggests traders are seeking privacy-asset exposure rather than sitting in cash.
The key watch is long-dated yields once the decision lands. If they hold near current levels despite a tighter short rate, markets are pricing U.S. inflation and fiscal risk separately from anything the Fed does next, a dynamic that would keep pressure on risk assets including crypto.
Frequently asked questions
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Why did Zcash rise while other major cryptocurrencies fell?
Zcash climbed nearly 6% to just above $1,200, the only major in the green, as the rest of the market traded on its lows ahead of the Fed's rate decision.
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What happened with the CLARITY Act in the U.S. Senate?
The CLARITY Act, the industry's main legislative push this year that would define which agency regulates which digital assets, failed in the U.S. Senate.
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How much did XRP, Ether and Solana drop?
XRP led decliners, down more than 7% to $1.29. Ether and Solana each fell about 3%, while Bitcoin, BNB and Tron were all down around 1%.
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What is expected from the Fed's rate decision?
A quarter-point hike is already priced in ahead of the Fed's Wednesday decision, so the surprise factor is limited.
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What should investors watch after the Fed decision?
Bitunix analysts say to watch long-term Treasury yields. If they hold near current levels despite the tighter short rate, markets are pricing U.S. inflation and fiscal risk separately from Fed policy.
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