Why is Zcash Price Up 16% Today as Wider Crypto Market Drops?
The post Why is Zcash Price Up 16% Today as Wider Crypto Market Drops? appeared first on Coinpedia Fintech News
Zcash (ZEC) has continued to outperform the wider crypto market. The top-tier privacy-centric altcoin rallied over 16% in the past 24 hours to trade at about $574 on Friday, November 14, during the late North American session.
Meanwhile, Bitcoin (BTC) led the wider altcoin industry in selloff, thus the total crypto market cap dropped 2.3% during the past 24 hours to hover around $3.22 trillion at press time. ZEC price rallied against all odds as crypto traders depicted extreme fear of further capitulation.
Why is the Zcash Price Outperforming the Wider Crypto Market?
High demand for privacy-centric tokens by whale investors
The demand for ZEC by institutional investors has significantly surged in the recent past. Earlier this week, a16z noted that the growing need for privacy will bolster the overall demand for the related altcoins.
Source: X
Cypherpunk announced that it has acquired a total of 203,775 ZEC, valued at about 50 million. Meanwhile, the Grayscale Zcash Trust has grown to a total of $200 million in assets under management.
Rising demand for privacy-centric coins amid the criminalization of privacy rights
The impressive performance of ZEC is largely influenced by the rising demand for privacy-centric crypto projects amid the notable criminalization of privacy rights globally.
For instance, the new European Union’s Anti-Money Laundering (AML) rules say people within this region can only transact up to €10,000 in cash payments. Additionally, the European Union expects crypto projects to verify identities for transactions greater than €1,000, in addition to banning privacy accounts and coins.
What’s Next for ZEC?
After outperforming almost all other mid-capped altcoins in the past few months, the ZEC price is well-positioned to continue in the same trend ahead. The large-cap altcoin, with a fully diluted valuation of about $12.1 billion, recorded a 32% surge in its daily volume to hover around $2.09 billion at press time.
From a technical analysis standpoint, the ZEC price is well-positioned to rally exponentially to reach $1000 soon. However, ZEC price must consistently close above $690 in the coming days to invalidate potential retrace towards $223 soon.
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