The cryptocurrency market is showing a curious bifurcation: while Bitcoin and large-cap tokens falter amid macro headwinds, Zcash is rallying sharply. For investors in Israel and globally, the move raises questions about thematic rotations in digital assets, the role of privacy-oriented coins and what institutional treasury moves signal.

Rallying Zcash and Weakening Bitcoin

Bitcoin has fallen from its early-October highs, with recent reports indicating it slipped below US$90,000, losing some 12% over the past week. In contrast, Zcash has rallied ~31% in the last seven days and more than 125% over the last month. According to CoinGecko data, ZEC trades with a 33.6% gain over the past week while the broader crypto market remains down. This divergence suggests investors are looking beyond the benchmark asset and seeking alternative narratives in crypto markets.

The Treasury Bet: Cypherpunk’s Zcash Accumulation

Cypherpunk Technologies, a publicly-listed firm backed by the Winklevoss twins, disclosed it purchased 29,869.29 ZEC (≈US$18 m) at an average cost of US$602.63 per coin — bringing its total holdings to 233,644.56 ZEC (average cost around US$291.04) representing ~1.43% of ZEC’s circulating supply. The purchase signals a strategic view that privacy coins like Zcash may serve as “digital privacy assets” complementing Bitcoin’s mainstream role. From a market-impact perspective, large treasury buying reduces available supply and may amplify price moves — especially in a volatile crypto context.

What’s Driving the Divergence and What to Watch?

Several factors seem to underpin ZEC’s strength: a growing on-chain shielded-pool (privacy transactions), institutional accumulation, derivative flows and leverage (ZEC open interest reportedly hit US$1.38 billion).  On the flipside, analysts caution the risk of correction. Zcash’s surge has been labelled “one of the longest in the coin’s history” with warnings of a sharp pullback.  Meanwhile, the macro environment is unfavourable for risk assets: rising interest rates, tighter liquidity and regulatory uncertainty weigh across crypto including for Bitcoin. For Israeli investors, the Zcash move illustrates the shifting internal dynamics of the crypto market: it’s no longer just Bitcoin-centric — select alt-assets may lead for now.

Looking ahead, key signals to monitor include: ZEC’s sustained shielded-pool growth, on-chain outflow/inflow dynamics, large investor wallet accumulation or distribution, and regulatory developments around privacy-centric tokens. In parallel, Bitcoin’s trajectory will influence broader sentiment and risk-on/ risk-off behaviour in crypto markets.

As the crypto landscape evolves, the contrasting behaviour of Zcash versus Bitcoin highlights a potential thematic shift — but the high volatility, regulatory tail-risks, and speculative nature of such moves warrant continued vigilance.