Zcash vs. Bitcoin: Can the Privacy Coin’s 190% Surge Mark a New Crypto Rotation?

Zcash (ZEC), a privacy-focused cryptocurrency, has jumped by over 190% since last week, hitting $177.35 for the first time in over three years. Still, it remains significantly below its all-time high of approximately $3,000 from 2016.

The token has also outperformed its top-ranking rival, Bitcoin (BTC), with a widely tracked ZEC/BTC pair up by over 160% in the same period.

What are the key drivers behind ZEC’s price explosion in terms of both the dollar and BTC? Let’s examine.

High-Profile Endorsements Boost Zcash Price

The primary catalyst for the Zcash surge is a reignited focus on financial privacy within the crypto space.

Influential figures, including venture capitalist Naval Ravikant and Solana’s Mert Mumtaz, publicly promoted Zcash, often referring to it as “insurance against Bitcoin” surveillance.

This is actually the most important chart.

Expanding the Privacy Set (s/o Henry)

The “privacy set” is the universe of possible participants/transactions that any given user’s action might be mixed with or hidden among.

The larger and more diverse that set, the stronger the… https://t.co/T3lKDnxquS

— davidfeiock (@davidfeiock) October 6, 2025

Mumtaz predicted Zcash could potentially hit $1,000, citing the increasing use of zero-knowledge proofs and Zcash’s privacy features.

Retail woke up after these comments, with Google searches for keywords “Zcash” and “privacy coins” hitting record highs in October 2025.

ZEC Fundamental Outlook Boosted By Protocol Updates

The secondary factors behind ZEC’s ongoing price boom are Zcash’s protocol improvements and utility enhancements.

For instance, upcoming technical upgrades, such as the NU7 network update, are aimed at implementing quantum-proof and faster transactions.

The launch of products like Zashi Cross Pay, which enables private, crosschain transactions with assets like Bitcoin, Ether (ETH), and stablecoins, has further boosted Zcash’s utility.

The Zcash ecosystem is also working on a significant upgrade to implement a hybrid proof-of-work and proof-of-stake model, alongside research into zero-knowledge system improvements via “Project Tachyon.”

Zcash Technical Outlook Against Dollar and Bitcoin

ZEC has confirmed a breakout from its multi-year descending triangle, marking a significant technical shift after years of compressed price action. The breakout above the downtrend line near $60 signals a potential reversal of the long-term bearish structure that had persisted since 2018.

The next key target sits around $435, aligning with the 0.5 Fibonacci retracement level from the 2017–2020 swing.

Historically, such breakouts from macro-scale triangles—as seen earlier with XRP—have led to powerful upside runs, often exceeding initial Fibonacci targets before encountering resistance.

Conversely, Zcash’s weekly relative strength index (RSI) was deeply overvalued as of Oct. 7. This could prompt traders to secure profits, leading to sharp corrections in the short term.

The bullish outlook will likely face invalidation if ZEC drops below the triangle’s upper trendline.

Meanwhile, ZEC/BTC appears to be undergoing an overbought correction after testing the 0.236 Fibonacci line as resistance.

The pair has pulled back sharply following a strong breakout rally, suggesting short-term profit-taking and renewed Bitcoin dominance.

Momentum indicators like RSI remain overheated, hinting that the consolidation phase may deepen.

If capital rotation into BTC continues, ZEC could retrace toward its 20- and 50-week EMAs near the 0.00056–0.00030 range, areas that may act as dynamic support before any potential trend resumption.