## Zcash, a Signal of the Privacy Coin Revival?

Interest in privacy coins is reigniting. Arthur Hayes, the former CEO of BitMEX, recently analyzed the future prospects of Zcash(ZEC) and suggested the possibility of reaching $1,000 by the end of 2025. With ZEC currently around $401, market attention is focused on how far it can go.

## Privacy Demand and Institutional Movements

There are several concrete reasons behind Hayes's optimistic outlook. First, about 30% of the circulating ZEC is tied up in private addresses. This is interpreted as a sign that individuals are increasingly utilizing private transaction features.

Second, institutional capital is quietly entering the Zcash market. Grayscale has launched a Zcash-only fund, and other institutional investors are building significant positions. The interest from institutions is likely to lead to long-term demand creation rather than mere speculation.

## Supply-Side Variables

The upcoming Zcash halving scheduled for 2025 is an important variable. Reduced supply can act as a catalyst for price increases, and this structural change supports Hayes's optimistic outlook.

## Remaining Risks

However, there are realistic constraints. Regulatory risks, liquidity shortages, and the high volatility typical of the cryptocurrency market still introduce uncertainty into Zcash's price trajectory. While institutional entry and rising privacy demand are positive signals, these factors could also cause unexpected dips during the bullish cycle.