Former BitMEX CEO Arthur Hayes has doubled down on a bullish call for Zcash (ZEC), saying the privacy-focused token could reach $1,000 — a four-figure price level he framed as an initial milestone rather than an endgame. Hayes made the comments publicly in December and has since watched the token gain roughly 40% from that moment, according to market data.
Why the optimism? A mix of demand for privacy features, growing institutional interest, and tightening supply dynamics are driving the narrative. Over the past month ZEC is up nearly 14%, and the token has posted eye-catching annual returns of more than 748%, outpacing most large-cap peers.
Key factors behind the move
- Privacy uptake: On-chain data show about 30% of Zcash’s circulating supply now sits in shielded addresses, signaling stronger demand for private transactions.
- Institutional accumulation: Late-2025 saw increased institutional activity, including a Grayscale announcement launching a dedicated Zcash investment fund. Regulatory filings also indicate other firms have disclosed large purchases and plans to hold meaningful portions of the supply.
- Supply shock on the horizon: Hayes pointed to a late-2025 halving event for Zcash as an inflection point that could reduce new issuance and tighten available liquidity, potentially amplifying price moves.
Technical outlook and timelines
Analysts are eyeing resistance in the mid‑hundreds. A confirmed breakout through those levels could open a path toward the high hundreds and, by their estimates, the $1,000 mark by mid‑2026. Hayes himself framed $1k as a “first stop,” while acknowledging the market could still see pullbacks into the low hundreds during the journey.
Risks to consider
Market structure remains fragile: leverage and liquidation events could trigger sharp swings. Regulatory pressure on privacy coins is a material wildcard — coordinated enforcement actions could quickly reverse gains and push prices back toward previous lows. Liquidity is also constrained on regulated exchanges; while decentralized venues may absorb demand, thinner order books there can magnify volatility.
Hayes summed up his stance bluntly on social media, tweeting that ZEC’s “first stop” is $1k, underlining the boldness of his outlook even as he warns of intermittent volatility.
Bottom line
Zcash’s recent rally appears driven by a convergence of a stronger privacy narrative, concentrated supply flows, institutional accumulation, and momentum-based price discovery. The path to a four‑figure valuation is being shaped by both on-chain fundamentals and technical positioning, but elevated regulatory and liquidity risks leave the outcome far from certain.
Read more AI-generated news on: undefined/news
