While Bitcoin and most altcoins are still testing key levels, Zcash has already delivered one of the strongest rallies of the year. But according to Real Vision CEO Raoul Pal, this explosive move may not signal the start of a lasting bull run. Instead, he believes Zcash’s surge looks more like capital rotating into niche narratives rather than a true structural breakout.
He adds that Zcash still has something to prove. A real bull trend only becomes clear when an asset continues to perform well as the broader market moves higher. For now, Zcash appears to be benefiting from short-term positioning rather than long-term conviction.
Zcash surged nearly 700% year-to-date, grabbing attention even as the wider crypto market struggled with volatility. However, that momentum has cooled quickly. Over the past month, ZEC has pulled back sharply, a sign that early buyers may already be locking in profits.
Pal sees this as a classic example of capital rotation. When Bitcoin stalls, traders often move funds into smaller narratives like privacy coins. That doesn’t automatically mean a long-term uptrend is underway. According to Pal, the real signal to watch is whether Zcash can build a stable base and then resume climbing once the overall market regains strength.
For now, he’s staying patient and has made it clear he’s not interested in chasing prices at current levels.
Zcash’s rally didn’t come out of nowhere. Growing interest in privacy-focused assets has played a big role, especially as concerns around surveillance and financial transparency continue to rise. The move was further amplified after Arthur Hayes made headlines with a bold $10,000 price call, triggering a sharp short-term spike.
That wave of attention pushed Zcash’s market cap from under $1 billion in August to more than $7 billion at its peak in early November. Even in a choppy market, ZEC managed to outperform, making it one of the standout stories of the year.
Beyond retail speculation, institutional attention is also starting to build. Grayscale recently filed to convert its Zcash trust into a spot ETF, a move that signals increasing acceptance of privacy coins within traditional finance. Still, Pal believes timing matters. Without a broader market reset or a clear base forming, Zcash remains more of a watchlist asset than a buy.
Overall, Zcash’s rally has been impressive, but Raoul Pal sees caution ahead. Until ZEC proves it can stay strong during a wider market recovery, its move looks more rotational than structural. For now, patience may matter more than hype.
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