Bitcoin surpasses 20 million coins, Zcash secures $25 million: Funds flow into scarcity and privacy sectors

SnapshotBot · 2026-03-10T14:25:01+00:00

The article analyzes the recent scarcity of supply in the Bitcoin market and the revaluation of privacy assets, noting that increased social media discussions driven by price rises have facilitated capital inflows. Bitcoin mining milestones and Zcash funding are considered significant driving factors, with scarcity and privacy serving as the main investment logic. The author believes these two narratives are sustainable and recommends investors focus on fundamental research and long-term holding to avoid short-term speculation risks.

SnapshotBot

2026-03-10 14:25:01

Abstract generation in progress

Scarcity Trading Returns

In the past 24 hours, The Block’s related coverage has doubled in popularity, coinciding exactly with Bitcoin reaching 20 million mined coins. Market attention has shifted from geopolitical and macro noise to the supply cap itself. Expectations for halving continue to build, amplified by media effects, pushing prices back toward $70k, creating a positive feedback loop between “price” and “discussion.” While oil price fluctuations generate lively debate, they have limited impact on positions; the real triggers for capital response are on-chain supply structures and scarcity signals.

Price rise → social media spread → off-chain capital inflow, forming a positive cycle of attention and liquidity.
My view: Scarcity is not just hype driven by events but a return to fundamental allocation logic.

Repricing of Privacy Assets

The Block’s report on Zcash securing $25M in funding hit the right timing window. Privacy coins are still seen by most traders as an “outdated narrative,” but ZEC’s relative outperformance against BTC and the “VC-backed revival” narrative spread by KOLs have sparked anxiety over missing the next wave of privacy assets. In the same window, Tornado Cash’s re-examination has heightened sanctions expectations but also highlighted the resilience of underlying privacy technology. My outlook is cautiously optimistic: Pricing centers on undervalued zk tech, not courtroom battles.

Driving Factors	Starting Point	Diffusion Method	Repeated Phrases	Conclusion: Sticky or Pure Hype?
Bitcoin milestone of 20 million coins	The Block’s supply cap coverage	Price-discussion feedback; scarcity anxiety before halving	“Last 1 million takes 114 years” “Unprecedented era of scarcity”	Sticky: Supported by on-chain data for medium- to long-term allocation
Zcash $25M funding	Paradigm/a16z-backed funding info	VC endorsement fuels privacy narrative resurgence	“Zcash privacy pool grew 400%” “Privacy tech revival”	Sticky: Undervalued tech asset with sustained appeal
Circle stablecoin payments / AI overlay	Bernstein reaffirms USDC growth framework	Traditional finance crossover focus; payment and utility narratives	“Circle’s upside potential 70%” “Stablecoins for AI micro-payments”	Self-reinforcing: Optimism spreads quickly but depends on interest rates; retreats fast under pressure
Tornado Cash re-examination	DOJ case progress on Roman Storm	Legal fear amplification; privacy tool precedent concerns	“Open source code could face 40 years” “DOJ stance shift on mixers”	Hype: Risks exaggerated; criminal liability narratives prone to overinterpretation
Sonic Labs USSD stablecoin	Native token supported by Frax	DeFi profit-seeking and RWA novelty	“Backed by tokenized US debt” “S token vertical integration”	Self-reinforcing: Ecosystem benefits short-term but unlocking risks underestimated
Aon insurance stablecoin pilot	Coinbase/Paxos USDC/PYUSD usage	Institutional adoption signals; GENIUS bill favorable	“Modernizing insurance value chain” “Stablecoin settlement mainstream”	Sticky: Medium-term trend of payment migration; retail side under-allocated

Self-reinforcing trap: Market fixates on the “20 million” headline but ignores 3-4 million coins lost or dormant, making actual circulating supply even tighter.
Pi Network is noise: Pi Day price talk is lively but lacks on-chain fundamentals; not comparable to Zcash’s “real funding.”
Privacy FUD should be dialed down: Despite legal and public opinion swings, the attitude of “code is not crime” is marginally softening; the technical value and market demand for privacy tools remain unproven.
Narrative relevance outweighs trading volume: Stablecoins penetrate because the “AI/payment” dual story can attract capital due to functional preferences, shifting focus from volatility speculation to use cases.

Key Points

Scarcity and privacy are the two most sustainable themes in this cycle.
Tornado-related FUD can be downplayed; technical and demand fundamentals have independent support.
Short-term yield racing is more self-reinforcing, constrained by interest rates and unlocking cycles.

Judgment: These two narratives are still in the early to mid-stage entry window. Funds conducting fundamental research and medium- to long-term holders have the most advantage; traders should follow the “scarcity + privacy” structure, downplay legal noise and short-term self-reinforcing themes. Builders can leverage zk and privacy-enhancement directions. Retail investors chasing event-driven stories like Pi are likely to find low cost-performance ratios.

BTC3.24%

ZEC5.12%

USDC-0.01%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.