Bitcoin traded at $86,264.06 with a marginal 0.59% gain over 24 hours, while Ethereum rose 0.34% to $2,714.39, leaving the broader crypto market essentially flat near $3 trillion. In contrast, privacy coins emerged as standout performers, with Zcash up 3% and Monero gaining 2.14% to trade at $562.32. This divergence occurred amid macroeconomic uncertainty following the Federal Reserve’s September rate hike to 3.75%-4.00% and a weak jobs report showing only 29,000 new positions against expectations of 84,000.
Despite the daily gains, Zcash remains approximately 19% below its late-September high of $1,698, having recently faced $30.25 million in outflows from Grayscale's Zcash ETF on Sept. 30. The fund has still recorded about $268 million in net inflows since its Aug. 25 launch. Monero trades roughly 11% below its September peak of $632.86, with a market cap of $10.57 billion compared to Zcash's $23.18 billion. Technical indicators suggest both assets are in consolidation rather than breakout, with Zcash facing resistance near $1,403.89 and Monero needing to hold above $558.69.
The relative strength of privacy coins against a stagnant Bitcoin highlights a shift in capital flow toward assets with specific narrative drivers, such as recent ETF launches and halving votes, rather than broad market beta. While Bitcoin’s golden cross signals potential long-term bullish momentum, the immediate market structure favors niche sectors that have experienced significant volatility and institutional product introductions. The flat performance of major traditional coins suggests investors are waiting for clearer macroeconomic direction before committing to large-cap assets, creating an environment where smaller, high-volatility assets can capture disproportionate attention.
However, the sustainability of this trend is questionable given the technical positioning of these assets. Both Zcash and Monero remain well below their recent highs, indicating that current gains may represent temporary relief rallies within a broader correction phase rather than confirmed reversals. The substantial outflows from the Zcash ETF underscore the fragility of institutional demand when price action does not align with entry points. Market participants should monitor whether these privacy coins can break through established resistance levels or if they will succumb to the same macro headwinds currently suppressing Bitcoin.
