BitMEX founder Arthur Hayes says Zcash could surge 5x over the next year as ZEC eyes a potential rally toward $1,000 after the latest market pullback. | Credit: CCN.com
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Key Takeaways
Arthur Hayes predicts Zcash (ZEC) could surge 5x over the next year, potentially reaching $2,500-$3,000.
Zcash dropped 7% in the latest market pullback but remains up 12% year-to-date, outperforming much of the crypto market.
Privacy concerns and geopolitical tensions are driving renewed interest in Zcash’s shielded transaction capabilities.
Privacy-focused cryptocurrency Zcash (ZEC) is back in the spotlight after BitMEX founder Arthur Hayes predicted the token could deliver a massive rally over the next year despite the latest crypto market correction.
Zcash has dropped by around 7% in the past 24 hours as digital assets faced renewed selling pressure following a failed attempt to recover from recent bearish sentiment.
However, the token remains one of the few cryptocurrencies still posting gains in 2026, up roughly 12% year-to-date.
In a recent interview, Hayes said he believes Zcash could rise fivefold within the next 12 months, reigniting speculation around privacy coins as geopolitical tensions and growing concerns over financial surveillance drive interest in anonymous blockchain transactions.
“I think Near has a 20x potential, where you know Zcash might have a 5 times potential over the next year,” Hayes said during the interview.
If that projection materializes, Zcash could trade between $2,500 and $3,000 based on recent price levels. Some analysts, however, believe the token first needs to defend key support around $500 before attempting another breakout.
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Zcash Rally Fueled by Privacy Demand and Speculation
Zcash recently surged to nearly $680 before undergoing a sharp pullback, with analysts attributing part of the rally to rising demand for privacy-focused assets amid escalating geopolitical tensions, including the ongoing conflict involving Iran.
The network offers shielded transactions through its Orchard and Sapling privacy pools, allowing users to hide transaction details from public view.
According to recent data, shielded transactions currently account for around 20% of Zcash activity, a figure that remains relatively low compared to the token’s broader speculative trading volume.
The percentage of shielded transactions had previously dropped to just 10% during the latest rally, suggesting that speculative interest, rather than organic privacy usage, was the primary driver behind the price surge.
Despite this, some traders argue that Zcash’s privacy features give it a unique use case in an increasingly regulated crypto environment where users may seek alternatives to fully transparent blockchains.
Zcash also remains significantly below its historical peak. The token once traded near $6,000 during the 2016 crypto cycle and is still down nearly 90% from its all-time high.
“We see a path to $1,000 if the $500 support holds,” analysts noted, although they cautioned that Hayes’ more aggressive long-term target may still be uncertain under current market conditions.
Long Liquidations and Technical Signals Trigger Pullback
The latest Zcash correction comes after bullish market positioning became overheated.
According to data from CoinGlass, a liquidation of approximately $300 million in long crypto positions occurred across the market in the past 24 hours, with Zcash accounting for roughly $10 million of wiped-out bullish bets.
The liquidation wave began intensifying on May 25, when around $16 million worth of long ZEC positions were erased in what became the token’s largest single-day liquidation event since January.
Zcash dropped by 7% in the last 24 hours. | Credit: CoinMarketCap
The pullback was already signaled by weakening momentum indicators. On the daily chart, Zcash’s Relative Strength Index (RSI) formed a bearish divergence as the price approached $680, while the indicator posted lower highs, a typically warning sign that buying momentum is fading.
The correction now places significant focus on the $500 support zone, which previously acted as a key launchpad during the recent rally.
Technical Breakout Keeps Bulls Focused on $740 and Beyond
Despite the short-term decline, some traders believe Zcash’s broader technical structure remains bullish.
Analysts noted that ZEC recently broke out of a long-term downtrend channel and moved above its 200-day simple moving average (SMA), a development often viewed as a signal of a trend reversal.
The token also broke through a major resistance zone near $550 and is currently retesting it.
If buyers successfully defend the breakout area, analysts expect the uptrend could resume with an initial upside target around $740, roughly 35% above current levels.
ZEC recently broke out of a long-term downtrend channel. | Credit: FINS/TradingView
Momentum indicators currently show that Zcash is neither overbought nor oversold, suggesting there may still be room for another move higher if market conditions stabilize.
Key support levels are currently near $400 and $300, while resistance remains concentrated around $550 and $740.
For now, traders appear focused on whether Zcash can maintain its footing above the critical $500 threshold, a level many believe could determine whether Hayes’ bullish prediction has a realistic path forward.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
