Zcash Surges 10% as Bitcoin Stabilizes Near $87,000

Markets Zcash Surges 10% as Bitcoin Stabilizes Near $87,000

Oil prices declining alleviated inflation fears during the Asian trading session, coinciding with progress on a bill aimed at solidifying the government's bitcoin reserves.

By Shaurya Malwa 49 minutes ago 2 min read

Zcash (ZEC) experienced a remarkable 10% increase, reaching over $1,616, positioning it as the leader among major cryptocurrencies. Meanwhile, Bitcoin remained steady at approximately $86,900, reflecting a 1% gain over the past 24 hours, as most prominent tokens also saw gains.

Analysts pointed to recent legislative developments in Washington as a key driver of the positive market sentiment. Notably, the House Financial Services Committee approved the American Reserve Modernization Act on September 17, with a vote of 28 to 21, moving it closer to a full House vote than any previous attempt.

Additionally, the U.S. Securities and Exchange Commission (SEC) stepped in to facilitate onchain trading of tokenized U.S. stocks, addressing a gap left by Congress. This timely action came as the CLARITY Act faced delays, and it was noted by Tony Dicarlo, director of institutional propositions at RootstockLabs, as a catalyst for renewed confidence in digital assets.

“Technically, Bitcoin's back above its 50 & 200 week moving averages, up ~29% in 35 days,” said Dicarlo. “Legislatively, The SEC stepped up support of digital assets where Congress hasn't.”

The American Reserve Modernization Act aims to establish a Strategic Bitcoin Reserve at the Treasury, encompassing about 325,000 bitcoins currently held by the government, primarily from seizures. The bill mandates a 20-year holding period for these coins and requires quarterly audits to ensure their preservation. It also proposes a study on acquiring additional bitcoins without increasing the deficit.

In broader market movements, bond prices rose as oil prices continued their downward trend. The yields on 10-year bonds in Australia and New Zealand each dropped by at least three basis points, and 10-year Treasury futures saw an increase, although cash Treasuries were closed due to a holiday in Japan.

Brent crude oil fell below $99 a barrel, marking its sixth consecutive day of losses, the longest streak in a year. This decline followed comments from President Donald Trump about productive discussions with Iranian officials in New York, as efforts to resolve ongoing conflicts were reiterated.

Japan's central bank raised interest rates last week in a divided vote, suggesting a gradual shift towards tighter monetary policy, which has led to a depreciation of the yen. This situation keeps borrowing costs low in Japan and maintains the flow of funds for riskier investments.