Over the past 24 hours, the valuation of the cryptocurrency market has increased from $387 billion to $408 billion, by more than $21 billion. Major cryptocurrencies like bitcoin and Ethereum have risen in the 3 to 6 percent range while smaller assets such as Zcash (ZEC), Aelf (ELF), Kyber Network (KNC), and Enigma rose in the 10 to 50 percent range.
On May 14, privacy-focused cryptocurrency Zcash experienced a 55 percent increase in price after being listed on Gemini, one of the largest cryptocurrency exchanges in the US led by the Winklevoss twins. Subsequent to the official announcement of Gemini, the price of Zcash increased from 0.0293 to 0.0456 BTC, by nearly two-fold.
Gemini CEO Cameron Winklevoss told Bloomberg in an interview said that privacy-focused cryptocurrencies like Zcash have struggled to gain large market valuations in the past due to concerns from investors towards potential crackdown by authorities, as seen in the Japanese cryptocurrency market as of recent.
“Part of the reason a coin like Zcash has a smaller market cap is because people are not sure if regulators will ever get comfortable with this type of technology. Today demonstrates that through education and collaboration and with the right controls in place, regulators can get comfortable with privacy technology,” said Winklevoss.
Over the past month, the Japanese government and the Financial Services Agency (FSA) have continued to restrict cryptocurrency exchanges from dealing with anonymous cryptocurrencies like Zcash and Monero to ensure trading platforms are not used by criminals to launder money.
The listing of Zcash by an exchange like Gemini which is known to be a leading trading platform in terms of compliance and security, is considered as a major milestone for privacy-focused cryptocurrencies and the community in general.
After experiencing an initial 20 percent decline in value, Zcash rebounded to the 0.04 BTC mark and continued to increase to around 0.043. Since earlier today, Zcash has fallen back to the 0.041 mark but as the demand for Zcash and privacy-cryptocurrencies rise on Gemini and in the US market, the price of Zcash is expected to rise even further in the short-term.
While the price of ZCash has already increased by more than 40 percent, the Relative Strength Index (RSI) of Zcash is still in the neutral zone at 66 and both exponential and simple moving averages are demonstrating a positive short-term trend for Zcash.
Last week, CCN.com reported that volume will be a key factor that could lead the market to rebound back to the $450 billion region. Already, the daily trading volume of the cryptocurrency market has increased from $17 billion to $22 billion over the past few days, by nearly $5 billion.
The daily trading volume of bitcoin has also slightly increased to $7 billion and hence, in the short-term, it is likely that the bitcoin price enters the $9,000 region again.
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Last modified: May 20, 2020 8:48 PM UTC