ZCash Is Confirming 'Rotation Thesis,' Says Raoul Pal
Zcash (ZEC), a privacy-focused cryptocurrency, surged 699% since January, peaking at over $7 billion in market capitalization. However, its price dropped by about 37% in the last 30 days, and trading momentum has slowed. Raoul Pal attributes Zcash’s rally more to capital rotation within the crypto space than to a sustainable bullish trend, suggesting it is too early to confirm a longer-term uptrend. He emphasizes the need for Zcash to establish a stable price base before further gains. The recent price surge followed a prediction by Arthur Hayes that Zcash could reach $10,000, sparking heightened interest. Institutional attention has increased, highlighted by Grayscale Investments’ filing to convert its Zcash trust into a spot ETF. Growing demand for anonymity and privacy in crypto has contributed to the spotlight on Zcash and other privacy tokens. Pal remains cautious, skeptical about buying at current levels and preferring to consider entry during a future market downturn.
