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Key Takeaways
- Zcash jumped 23% to near $1,369, far outpacing gains in Bitcoin, Solana, BNB, HYPE, Ether, XRP and Dogecoin.
- Paradigm co-founder Matt Huang disclosed his firm holds ZEC, calling it “a private complement to Bitcoin” while backing continued developer funding.
- The Fed raised rates a quarter point to 3.75%-4%, its first hike since 2023, with markets largely having priced in the move beforehand.
Privacy token Zcash surged 23% over the past 24 hours to trade near $1,369, leading a broader rally across major cryptocurrencies early Thursday in Asian trading hours. The gains came alongside a rebound in stock futures following the Federal Reserve’s first interest-rate increase since 2023.
Zcash Leads a Broad Crypto Advance
Bitcoin edged up less than 1% to about $76,258. Solana gained nearly 3% to just below $100. BNB and HYPE, the token of crypto trading platform Hyperliquid, each added more than 2%, while Ether, XRP and Dogecoin rose between 1% and 2%.
Zcash’s rally outpaced the rest of the market by a wide margin. ZEC lets users send funds without publicly disclosing the sender, recipient, or amount involved. Its holders recently approved changes intended to speed up transactions while preserving scheduled reductions to new coin issuance, a monetary policy feature it shares with Bitcoin.
A Paradigm Disclosure Coincides With the Rally
ZEC’s surge coincided with comments from Matt Huang, co-founder of crypto investment firm Paradigm, who disclosed in a post on X that his firm holds ZEC and described the token’s role relative to Bitcoin.
“A private complement to Bitcoin.”
Huang said he supports continued funding for Zcash’s developers and argued that governance votes by coin holders should be combined with other decision-making mechanisms when determining changes to the network.
Paradigm’s disclosed position gives the firm a direct financial stake in ZEC’s performance, a detail relevant to how its public comments on the token should be read.
Fed Raises Rates a Quarter Point
The broader crypto rebound followed the Federal Reserve’s decision to raise its benchmark rate by a quarter percentage point to a range of 3.75% to 4%, marking its first increase since July 2023. The move was widely anticipated by markets heading into the decision.
Higher interest rates typically raise the cost of borrowing and can reduce capital available for speculative assets. They also increase the relative appeal of interest-bearing cash and government debt compared with Bitcoin, which generates no yield simply from being held.
An expected rate increase can still coincide with rising crypto prices if investors grow less concerned about the path of future increases. The Fed’s median projection put the policy rate at 4.1% by the end of both 2026 and 2027, consistent with one additional quarter-point increase later this year.
Jeff Ko, chief analyst at ViaBTC, said in an emailed statement that Wednesday’s increase had been largely priced into markets ahead of time.
“To me, the Fed is signaling that it does not currently envisage an aggressive tightening cycle, while markets appear reassured by its efforts to contain inflation.”
Equities and Treasury Yields Also Moved Higher
S&P 500 futures rose 0.6% and Nasdaq 100 futures gained 0.7% following the Fed’s announcement. Asian equities added 0.3% in early trading. The two-year Treasury yield, which closely tracks expectations for Fed policy, eased two basis points to 4.71% after touching its highest level since 2024 in the prior session.
