Arthur Hayes Predicts Zcash Could Hit $1000 on Privacy Surge

5 min read
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Dec 29, 2025

Arthur Hayes just called Zcash's first big target at $1,000, fueled by exploding privacy demand and tight supply. With shielded holdings hitting records and institutions piling in, is this the privacy coin's moment? But watch out for volatility and regs that could change everything...

Financial market analysis from 29/12/2025. Market conditions may have changed since publication.

Imagine scrolling through your feed late at night and spotting a bold claim from one of crypto’s most outspoken figures: a privacy-focused coin could soon smash into four-digit territory. That’s exactly what happened when a prominent trader and former exchange boss dropped his take on Zcash recently. It got me thinking— in a world where every transaction feels watched, could real privacy finally drive a massive comeback for certain altcoins?

I’ve been following crypto for years, and privacy coins have always intrigued me. They’re like the rebels in a space dominated by transparent blockchains. But lately, something’s shifting. Demand for true financial privacy seems to be heating up, and one coin in particular is catching fire because of it.

The Bold Prediction That’s Turning Heads

A well-known figure in the crypto trading world, the ex-CEO of a major derivatives platform, recently shared his bullish outlook on Zcash. He pointed to $1,000 as the initial major milestone—not the endgame, but a realistic “first stop” on a potentially much higher path. He even joked about feeding on the skepticism of doubters while highlighting the strength of the current setup.

The tears of the bears shall be my sustenance. First stop $1k.

This wasn’t just random hype. Coming from someone with deep experience in high-stakes trading, it carried weight. And the market reacted quickly. Since that statement hit the feeds in late December 2025, Zcash has climbed around 40%, pushing its price into the mid-$500s. That’s on top of already impressive gains—over 700% for the year, outpacing many bigger names in the space.

But what makes this prediction stand out? It’s rooted in a mix of on-chain trends, supply mechanics, and broader narratives that seem to be aligning perfectly right now.

Why Privacy Is Suddenly in the Spotlight

Let’s face it: most blockchains are completely open books. Anyone can trace transactions, see wallet balances, and piece together financial histories. For everyday users, that might not seem like a big deal at first. But as crypto goes more mainstream—and governments ramp up surveillance—people are waking up to the value of genuine privacy.

Zcash stands out because it offers optional shielding. Users can choose fully private transactions using advanced zero-knowledge proofs, hiding amounts, senders, and receivers without compromising the network’s integrity. It’s not mandatory, which makes it more flexible than some purely private alternatives.

And the data backs up growing interest. Roughly 30% of the circulating supply now sits in shielded pools—an all-time high jump from earlier in the year. That means holders are actively moving coins into private addresses, signaling real usage rather than just speculation.

  • Increased shielded transactions reflect demand for protection against tracking
  • On-chain metrics show sustained growth in private holdings
  • This trend has accelerated through late 2025

In my view, this isn’t just a flash in the pan. As more people worry about data leaks, regulatory overreach, or even just personal security, tools that offer real anonymity could become must-haves.

Supply Dynamics Adding Fuel to the Fire

Timing matters in crypto, and Zcash got a big boost from its recent halving event in late 2025. Like similar mechanisms in other proof-of-work chains, this cut the block reward in half, slowing new coin creation and tightening overall supply.

Combined with the rise in shielded holdings—which effectively removes coins from immediate circulation—this creates a classic scarcity play. Less new supply hitting the market, plus coins being locked away privately? That’s a recipe for upward pressure if demand keeps building.

Historical patterns support this too. Past halvings in similar assets have often preceded major rallies as the market adjusts to reduced issuance.

Institutions Starting to Take Notice

One of the most interesting developments? Big players are getting involved. A major asset manager launched a dedicated Zcash trust earlier, and there are even talks of converting it into a spot ETF. That would open the door for easier, regulated exposure.

Other firms have been accumulating quietly, with some aiming to hold significant chunks of the total supply. When institutions start buying and holding long-term, it often signals confidence in the underlying story.

Perhaps the most intriguing part is how this fits into broader trends. With potential regulatory changes offering more clarity for optional-privacy models, Zcash could position itself as a compliant yet powerful alternative.

Technical Setup and Potential Targets

From a chart perspective, things look promising but not without hurdles. Zcash has been forming patterns that technicians love—ascending triangles, breakouts above key moving averages.

Current resistance sits in the mid-to-high hundreds. A clean break there could open the door to rapid moves higher, potentially testing that $1,000 level by mid-2026. Some analysts even see paths beyond that if momentum holds.

  1. Watch for confirmation above recent highs around $550
  2. Support levels in the low $400s could catch any dips
  3. Volume spikes on breakouts would add conviction

Of course, charts aren’t destiny. Leverage in futures markets has been high, leading to squeezes on both sides.

The Risks You Can’t Ignore

No bullish story is complete without acknowledging the downsides. Privacy coins have faced intense regulatory scrutiny for years. Potential crackdowns or delistings from major platforms could trigger sharp sell-offs.

Liquidity is another concern. Much of the trading happens on decentralized venues with thinner books, which can amplify swings. We’ve already seen violent corrections after big pumps.

Leverage-driven liquidations remain a wildcard. High funding rates and open interest mean crowded trades could unwind fast.

  • Regulatory actions targeting privacy features
  • Exchange delistings reducing access
  • Volatility from over-leveraged positions
  • Broader market corrections dragging everything down

In my experience, these kinds of runs often come with big pullbacks. That predicted dip to the low hundreds? It’s not off the table if sentiment flips.

Where This Could Lead in 2026 and Beyond

Looking ahead, the privacy narrative feels like it’s just getting started. If global trends toward more surveillance continue, demand for robust private options might explode.

Upgrades improving usability, potential ETF approvals, and further institutional inflows could provide tailwinds. On the flip side, adverse regulations or competition from newer privacy tech might cap upside.

Personally, I find the combination compelling: real utility meeting scarcity at a time when people crave control over their finances. But as always in crypto, position sizing and risk management are key.

Whether Zcash hits that $1,000 mark or pulls back first, it’s clear the conversation around privacy in digital assets is heating up. And that’s something worth watching closely as we head into the new year.


What do you think—will privacy demand push Zcash to new highs, or are the risks too steep? The debate is just beginning.

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Success is the ability to go from one failure to another with no loss of enthusiasm.
— Winston Churchill
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