Zcash has rallied more than 45% this week after the $12 billion investment firm Paradigm disclosed it holds ZEC, and a network vote confirmed the coin will keep Bitcoin-style halvings. A less hawkish Fed rate path and a possible Middle East de-escalation added further support to the move.
Zcash climbed more than 45% this week on two catalysts specific to the network itself. The community's NU7 governance vote overwhelmingly backed keeping Bitcoin-style halvings while cutting block times to 25 seconds, giving the market clarity on the coin's upcoming network upgrade.
The bigger catalyst, though, was Paradigm's disclosure that it owns ZEC. Co-founder Matt Huang described Zcash as a privacy-focused complement to Bitcoin, and the firm confirmed it also invests in the Zcash Open Development Lab. Paradigm manages roughly $12 billion and is one of the better-known institutional investors in crypto, having backed major crypto projects.
Fed's softer rate path lifts risk assets
On the macro side, the Fed delivered a rate hike on Wednesday as widely expected, but projected a less hawkish path for interest rates than markets had priced in. After an initial risk-off reaction, risk assets, including crypto, rallied back.
Middle East talks could ease inflation pressure
Trump called a meeting with Gulf leaders on Tuesday on the sidelines of the UN General Assembly in New York to discuss next steps in the war with Iran, with the Iranian delegation set to take part. A de-escalation would likely send oil prices lower, easing inflation and rate hike concerns and improving broader risk sentiment, which would ultimately support the crypto market.
Technical picture stays bullish
On the daily chart, Zcash bounced from a major trendline and extended its rally into new highs. On the four-hour chart, a break above the resistance zone near the 1,220 level added further momentum as more buyers stepped in. Traders are watching the Trump-Gulf talks and Wednesday's flash US PMIs as the next catalysts for the coin.
Source: Investinglive
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