Zcash Rises 6% While Bitcoin and XRP Fall
Zcash is benefiting from the rise in privacy coins and Grayscale's new spot ETF, while Bitcoin, XRP, and other majors wait for the Fed decision.
Key Takeaways
- Zcash rose nearly 6% on Wednesday to just above $1,200 and was the only major coin in the green.
- Bitcoin, XRP, Ether, Solana, BNB, and Tron fell as the market waited for the Federal Reserve's interest rate decision.
- The weakness followed the CLARITY Act's failure in the U.S. Senate, which increased regulatory uncertainty.
Zcash rose nearly 6% on Wednesday morning in Europe to just above $1,200 (€1,040), making it the only major coin in the green. At the same time, Bitcoin, XRP, Ether, Solana, BNB, and Tron fell as the crypto market waited for the Federal Reserve's interest rate decision later in the day.
Zcash Stays Strong
The move in Zcash fits into a broader rebound in privacy coins. According to the market data provided, the token is still about 130% higher over the past 30 days and is trading close to the all-time highs from 2016. That makes the recent jump stand out, especially since the rest of the market was weaker.
One extra point of context is that Grayscale's first U.S. spot Zcash ETF recently started trading on NYSE Arca under the ticker ZCSH. That listing gives Zcash more visibility among investors looking for crypto exposure through investment products, although that alone does not say anything about where the price will go in the short term.
Majors Under Pressure
XRP was the biggest loser and fell more than 7% to $1.29 (€1.12). Ether and Solana each lost about 3%, while Bitcoin, BNB, and Tron were down around 1%. Bitcoin traded just below $76,000 (€65,900) after briefly dipping under $75,000 (€65,000) on Tuesday.
That weakness came alongside the CLARITY Act's failure in the U.S. Senate. The bill was meant to define which regulator oversees which digital assets, but it did not make it across the finish line. As a result, the sector is once again left with a lot of uncertainty about the federal framework in the United States.
The broader market also reacted to that political setback: the CLARITY Act's failure had already led to heavy liquidations in bullish futures positions, especially in bitcoin and ether.
Fed and Long-Term Rates
The Fed will decide on interest rates later on Wednesday. A quarter-point hike is already mostly priced in, so investors are mainly watching how long-term U.S. Treasury yields react after the decision.
Bitunix analysts told CoinDesk in an email that the size of the move matters less than what happens next with long-dated yields. If those rates stay close to current levels despite a higher short-term rate, that suggests the market sees inflation and fiscal risks in the U.S. as separate from the next Fed decision.
