Summary
- Among the largest cryptocurrencies, Zcash and Monero have emerged as top performers over the last 24 hours, with Bitcoin rising only 0.59% and Ethereum 0.34%.
- Zcash is trading approximately 19% lower than its peak of $1,698 reached in late September, and Grayscale's Zcash ETF experienced $30.25 million in outflows on September 30.
- The macroeconomic landscape remains stable: the Federal Reserve raised rates to 3.75%-4.00% on September 16, followed by disappointing September payroll numbers of 29,000 against expectations of 84,000.
After a period of notable growth, Bitcoin's price is now relatively stagnant, currently at $86,264.06, representing a 0.59% increase over the past day. Ethereum is at $2,714.39, with a mere 0.34% rise.
The overall cryptocurrency market capitalization sits just above $3 trillion, showing minimal movement according to CoinGecko. Other major cryptocurrencies are performing similarly, with Solana up 1.4% and XRP gaining 1.07%, while BNB and Tron saw declines of 0.41% and 0.22%, respectively.
In a market where most well-known coins are stable, privacy coins are making notable gains.
Zcash, a leading privacy coin, has surged in value recently, increasing by 3% today as it rebounds from a recent decline from its peak near $1,600. Monero has also seen a rise of 2.14%, bringing its price to $562.32 in the last 24 hours, making these privacy coins the standout assets of the day.
Analyzing daily performance, Zcash has risen by 2.62% on Binance since the start of the trading day, indicating a continued upward trend. Monero's increase follows a spike that began yesterday and has persisted over the last 24 hours.
The overall lack of movement in the cryptocurrency market can be attributed to macroeconomic conditions. The Federal Reserve's recent rate hike to 3.75%-4.00% on September 16 marked its first increase since July 2023. Furthermore, the September jobs report indicated only 29,000 new jobs were created, significantly lower than the anticipated 84,000, with unemployment rising to 4.2%.
This disappointing jobs report reduced the likelihood of an additional rate hike in October to around 22%, according to CME FedWatch. The diminished chances of further rate increases are generally favorable for risk assets, leading to a stable market following the September rate hike.
Despite the market's overall stagnation, Bitcoin continues to exhibit bullish tendencies. Recently, it registered a second golden cross, with its 100-day exponential moving average surpassing the 200-day. However, it remains below the resistance level of $87,354. Even during robust bull runs, periods of consolidation are necessary.
It's important to note that while Zcash is experiencing positive movement, this does not signify a definitive trend reversal. Currently, ZEC is still about 19% below its late-September peak of $1,698, and one day of gains does not close that gap.
Zcash saw its price drop to $1,333.50 on October 1, coinciding with Grayscale's Zcash ETF experiencing a $30.25 million outflow. Despite this, the fund has attracted approximately $268 million in net inflows since its launch on August 25.
Looking at the bigger picture, Zcash has seen an impressive increase of about 2,500% over the past year and shows no signs of a significant trend reversal. The latest surge was a 253% rise from a low of $480.72 to the $1,698 high in late September, driven by two key events: the launch of Grayscale's Zcash ETF and a vote among coinholders to maintain Bitcoin-style halvings to control inflation.
Periods of cooling are not unusual for Zcash, as evidenced by a 38% drop earlier this year during the Ironwood counterfeiting scare, after which it rebounded past $1,600. The current decline of about 19% from its September high is relatively mild in comparison.
Monero finds itself in a similar situation, trading roughly 11% below its September high of $632.86, with a market capitalization of $10.57 billion, significantly less than Zcash's $23.18 billion.
Based on daily analysis, both privacy coins appear to be in a consolidation phase rather than breaking out. Zcash's price is currently at $1,372.69, just below the resistance level of $1,403.89, which is derived from the range between the low of $451.75 and the high of $1,698. Today's peak of $1,385 fell short of this resistance, with the 38.2% retracement level at $1,221.93 below acting as the next target.
In contrast, Monero is showing signs of being overbought but has maintained a more stable trading pattern since late September.
Key levels to monitor moving forward include Bitcoin needing to surpass $87,354, Zcash aiming for $1,403.89 in resistance, and Monero striving to hold above $558.69.
Disclaimer
The opinions expressed in this article are intended for informational purposes only and should not be considered financial or investment advice.