Quick Read
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Zcash gained 7.5% and Monero rose 3.8% as Bitcoin fell 2%, with upgrade hype and a FinCEN regulatory retreat driving the outperformance.
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Grayscale's Zcash ETF launch in August has helped push ZEC up 137% year-to-date, while Bitcoin has fallen 8% over the same period.
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Zcash's bounce lacks conviction as trading volume faded after its spike, and ZEC still sits down 24% over the past 30 days.
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Zcash(CRYPTO: ZEC) rose 7.5% in the week ending October 25, 2026, while Monero(CRYPTO: XMR) gained 3.8%. In contrast, Bitcoin(CRYPTO: BTC) fell 2%. Zcash is currently priced at $1,208, and Monero at $606. Notably, Monero has climbed 13.6% over the last 14 days, whereas Bitcoin has fallen by 3.3%.
Privacy coins are cryptocurrencies designed to keep transactions private by hiding the sender, recipient, and transaction amount. Despite their recent gains, Zcash and Monero look weaker over longer periods. Zcash is down 24.1% over the last 30 days and trades 62.2% below its 2016 all-time high. Monero is also facing challenges, trading 24% below its January peak of $797.73.
Oil Hit Bitcoin While the NU7 Upgrade Date Lifted Zcash
Bitcoin's recent struggles stem from external factors. On October 22, Brent crude oil prices soared above $111 a barrel, raising inflation concerns and reducing demand for speculative investments like cryptocurrencies. Asian and U.S. stocks also slipped on doubts about AI spending, and Bitcoin fell to $79,107 on October 24.
Zcash drew attention with its upcoming network upgrade, NU7, scheduled for around November 5. This upgrade aims to significantly speed up payment confirmations by reducing the block time from 75 seconds to 25 seconds. Additionally, the upgrade will temporarily remove 60% of each block's fees from circulation until February 2031, which investors generally welcome because it may reduce supply.
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Zcash saw a notable 16.5% price increase, rising from $1,129 on October 18 to $1,316 by October 21. While the timing of this spike aligns with the upgrade announcement, it is still difficult to determine its cause conclusively.
A FinCEN Retreat Lifted the Mood Around Monero
Monero's recent upswing can be partly linked to a regulatory shift. On October 5, the Financial Crimes Enforcement Network (FinCEN) rescinded a proposal that could have imposed stricter regulations on crypto mixing—the technique used to obscure transaction origins, similar to privacy coins. This change likely boosted market sentiment, helping drive Monero's 14-day price increase.
Monero is also preparing for a major upgrade, FCMP++, that aims to significantly enhance privacy features. Although still in testing, it could potentially obscure transaction sources among over 150 million candidates, a sizable jump from the 16 candidates under the current design.
A short squeeze could also have aided Monero's rise. A short squeeze occurs when traders holding short positions are forced to buy an asset back at higher prices to cover their positions. However, data on liquidation totals for the past week has not been released, so this remains speculative.
Zcash Bounced Inside a Downtrend as Volume Faded
Zcash's recent gains occurred within a continuing downtrend, characterized by a series of lower highs and lower lows. After hitting an intraday high of $1,693 on September 26, ZEC fell to $1,048 by October 18 before rebounding to $1,373 on October 21. However, this recovery was short-lived, as ZEC closed at $1,218 on October 22, $1,182 on October 23, and $1,207 on October 24.
Moreover, trading volume decreased, with daily volume exceeding 100,000 ZEC during a brief surge from October 20 to 22, then falling. When a rally loses momentum in trading volume, it often suggests new buyers aren't stepping in to replace those who initially drove the price up, indicating the price bounce may not reflect a strong new trend.
Thin Markets and an ETF Help Explain Why Privacy Coins Move Differently
Bitcoin's market behavior has recently mirrored that of macroeconomic factors. Oil prices and stock market shifts directly affect its performance. Conversely, privacy coins like Monero and Zcash respond to a distinct investor base that prioritizes transaction anonymity. Their markets are less active, leading to larger price swings on smaller inflows and outflows.
In addition, Zcash benefits from recent institutional interest. The Grayscale Zcash ETF ( NYSEARCA: ZCSH ) launched on August 25, allowing U.S. investors to access ZEC through standard brokerage accounts, and Zcash has risen 136.6% year-to-date. This contrasts sharply with Bitcoin, which has fallen 7.7% during the same period.
Monero, however, primarily trades on cryptocurrency exchanges, and regulatory concerns have led several platforms to delist it. This has resulted in a more dedicated but less active investor base, which may explain its more modest 3.8% gain.
Can Privacy Coins Continue to Outperform Bitcoin?
While Monero appears to have a firmer foundation, Zcash's trajectory may be more variable as it navigates through a prevailing downtrend. Upcoming developments may determine whether these privacy coins can sustain their recent gains against Bitcoin over the longer term.
So the Zcash rally looks likely to fade, especially if NU7 slips past November 5, while Monero has a better chance of holding up. For Zcash, a daily close above $1,316 could show buyers have taken control, while a drop below $1,048 could confirm the downtrend has resumed. For Monero, the level to beat is its $797.73 January record, and the warning sign is a week when XMR falls further than Bitcoin.
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