Zcash Rockets Up to 69% as Multicoin Capital Discloses Major Position

Zcash has surged back into focus, climbing 40%–69% over the past week after Multicoin Capital revealed a major position in the privacy coin. The move triggered $46.7 million in short liquidations, making it one of the largest wipeouts in the market — second only to Bitcoin, according to CoinDesk.

The rally marks a sharp turnaround for a token that had traded quietly for much of the past year. Multicoin’s bet, centered on rising financial surveillance and demand for privacy, appears to have reignited interest across the sector.

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What Triggered the Rally

The move in Zcash came down to one clear catalyst: Multicoin Capital revealed it had built a meaningful position in ZEC.

The thesis was simple — as governments expand financial surveillance and asset seizure tools, demand for privacy-focused assets should rise. That message hit a market already leaning in that direction, with growing concerns around wallet tracking, sanctions, and onchain monitoring.

Zcash, powered by zero-knowledge proofs, sits at the center of that conversation — and the market reacted fast.

Within hours, buying pressure surged across both spot and derivatives markets. Short sellers were caught offside, triggering $46.7 million in liquidations — one of the largest events in the market during that period.

Short Squeeze Dynamics

The rally wasn’t just driven by new buyers — it was amplified by market structure. As prices moved higher, short positions were forced to close, creating a feedback loop:

• Shorts buy back → price rises

• Price rises → more shorts liquidated

This classic short squeeze pushed ZEC far beyond what initial demand alone would suggest.

At one point, liquidation volume trailed only Bitcoin, highlighting just how heavily positioned the market had been against ZEC before the move.

Trading volume spiked across exchanges, with ZEC outperforming nearly every major asset over the week, posting a ~69% gain.

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Why Privacy Is Back

This rally didn’t happen in isolation — it’s part of a broader shift. Privacy has re-emerged as a core narrative in 2026, driven by:

• Expanding government surveillance tools

• Tighter global regulation

• Increased use of asset freezes and sanctions

Zcash stands out because of its flexibility. Its zk-SNARKs tech allows both transparent and shielded transactions — a key difference from fully private chains that have faced delistings.

Multicoin’s position acted as a signal, bringing institutional attention back to a sector many had avoided.

How Far Can It Go?

Some analysts are already calling for aggressive upside — including projections as high as $1,000 and potential market share gains versus Bitcoin.

Those targets are speculative.

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ZEC has seen sharp rallies before, including a spike above $800 shortly after launch, followed by long periods of decline. Sustaining this move will depend on more than narrative momentum.