"Privacy Coins are the Trend These Days"...Zcash 'Surges 90%' While Bitcoin Stumbles

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Privacy-focused cryptocurrency Zcash (ZEC) is attracting market attention by surging nearly 90% in a month amid Bitcoin's (BTC) bear market. While Bitcoin has been struggling below $78,000, Zcash has continued its strong rebound, driven by increasing demand for privacy, institutional buying, and expectations for the post-quantum era.

According to Coingape on May 20 (local time), Zcash has risen 5% in the last 24 hours, 7% weekly, and 30% over two weeks. Trading volume has remained around $600 million, indicating sustained investor interest. CoinMarketCap reported that Zcash surged 84% over the past month, while the overall cryptocurrency market gained less than 1%.

The main reason behind Zcash's strength is the recovery in demand for privacy assets. As the broader market undergoes correction, investors have sought new themes that can withstand the downturn, and Zcash, with privacy as its core identity, has benefited. Rising social dominance was also cited as a factor that boosted market attention.

Expectations for the post-quantum era also supported the uptrend. Josh Swihart, founder of Zcash Open Development Lab, recently stated that it could take 12 to 18 months to reach a fully post-quantum state. Accumulation by large buyers and short liquidations also fueled Zcash's upward momentum.

In contrast, Bitcoin was pushed below $77,000 after facing resistance near $82,000. Macroeconomic pressures, including inflation concerns, rising Treasury yields, and declining real wages, weighed on risk asset sentiment. In the US spot Bitcoin ETFs, redemptions occurred in BlackRock IBIT, Ark ARKB, and Fidelity FBTC, along with a slowdown in institutional demand.

In the derivatives market, long position liquidations also increased selling pressure. The total cryptocurrency market capitalization decreased by over $100 billion from previous levels, and on-chain data also showed that funds flowing into Bitcoin have not reached past bull market levels. Coingape analyzed that Zcash's ability to maintain the $580 support level is key for its short-term trend; a breakout above $600 could lead to continued gains, but a breach of the support level could result in a pullback to $550.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*