Zcash Jumps 23% as Bitcoin Rises After Fed Rate Hike
Privacy-focused cryptocurrency Zcash (ZEC) surged 23% in 24 hours, reaching around $1,369 during Thursday’s Asian trading session. The rally came as bitcoin and other major cryptocurrencies moved higher following the Federal Reserve’s first interest-rate increase since 2023.
Bitcoin gained less than 1% to trade near $76,258, while Solana (SOL) rose almost 3% to just below $100. BNB and Hyperliquid’s HYPE token added more than 2% each. Ether, XRP and dogecoin also moved higher, posting gains between 1% and 2%.
The broader crypto market recovery followed a rebound in stock futures after the Fed raised its benchmark interest rate by 25 basis points to a range of 3.75% to 4%.
Zcash Gains Support as Privacy Focus Draws Attention
Zcash’s sharp move higher came alongside public comments from Matt Huang, co-founder of crypto investment firm Paradigm, about the token’s role in the digital asset market. Huang disclosed that his firm owns ZEC and described Zcash as a private complement to bitcoin.
Zcash allows users to transfer funds without publicly revealing the sender, recipient or transaction amount when using its privacy features. The network has continued to attract attention as demand for financial privacy remains part of the wider crypto discussion.
Zcash holders recently voted in favor of proposals to speed up transactions while preserving the network’s scheduled reductions in new coin issuance. The halving system is similar to bitcoin’s approach, gradually reducing the rate at which new coins enter circulation.
Huang also supported continued funding for Zcash developers. At the same time, he argued that token-holder voting should be combined with other methods of making decisions about network changes.
Fed Rate Hike Sets the Market Tone
The Federal Reserve’s rate increase initially added pressure to risk assets, as higher borrowing costs can reduce liquidity available for speculative investments. Higher interest rates can also make cash and government bonds more attractive compared with assets such as bitcoin, which does not pay income simply for being held.
However, markets can respond positively to an expected rate hike if investors believe the central bank will avoid a more aggressive tightening cycle. The latest projections placed the median policy rate at 4.1% at the end of both 2026 and 2027, suggesting room for one additional quarter-point increase this year.
Financial markets showed signs of relief following the decision. S&P 500 futures rose 0.6%, while Nasdaq 100 futures gained 0.7%. Asian equities added around 0.3%.
The two-year Treasury yield, which closely tracks expectations for Federal Reserve policy, fell two basis points to 4.71% after reaching its highest level since 2024 during the previous session.
With bitcoin holding above $76,000 and Zcash leading the major crypto gains, traders are watching whether the broader recovery can continue. For ZEC, the combination of renewed market strength and growing attention on privacy-focused transactions has placed the token among the session’s strongest performers.