Key Insights
- •Privacy coins may act as a bear market hedge because major names like ZEC, XMR, ZEN, and FIRO stayed strong even as most of the market fell.
- •Ethereum’s new privacy update, Kohaku, increased interest in privacy tools, which pushed attention back to older privacy coins that already show steady demand.
- •Global rules around wallet limits and tracking are rising, which is helping the privacy sector grow during a possible bear market.
The crypto market has been underperforming for weeks. However, while the full privacy index fell about 16.7% this week, some privacy coins are still holding up well.
ZEC is up more than 700% since September, and coins like XMR, ZEN, and FIRO have stayed steady even while the rest of the market dropped.
As the talk about a bear market grows stronger, traders want to know if privacy tokens can act as a safer place to hold money.
And Ethereum’s latest move into the privacy space might have just given the market a hope they were looking for, amid the bear market vibes.
Why the Ethereum Privacy Update Matters in a Bear Market
Ethereum introduced Kohaku, a new system that makes private transfers and private wallets easier to use. It works with tools like Railgun and Privacy Pools, which help users hide their transfers while keeping things safe. This step shows that Ethereum wants privacy to be a basic part of its network.
After the Kohaku demo, interest in older privacy coins started rising again. Some of these include Monero, ZEC, and more.
ZEC gives users a way to hide transfers. And this might be one of the reasons why it has been blowing up over the past few months.
Monero and ZEN also focus on keeping sender and receiver details private. These are some of the coins people look at when they want more privacy.
Charts show rising activity around these names even while the main market moves down. This shows traders still want privacy tools, and they are watching this group closely during this bear market phase.
Privacy Coins Are Moving on Their Own
ZEC remains the strongest example this cycle. It jumped from about $30 to over $700 in two months.
Some of this move may have come from a large $60 million buy, but private-transfer activity also grew to almost 20% of the supply. This shows real use, not only trading hype.
ZEC, XMR, ZEN, and FIRO did not fall in the same way Bitcoin and Ethereum did. They held their trend even when the wider market turned weak.
This is why traders think this group can act as a hedge when a bear market begins. They react to different things and follow their own demand story.
More global rules are also pushing people toward privacy. New rules in the UK, EU, US, and parts of Asia talk about wallet limits and closer tracking.
When rules get tighter, users move toward coins that let them protect their activity. This builds slow but steady demand for privacy assets.
Can Privacy Coins Help During a Bear Market?
Privacy coins have moved differently from the rest of crypto. They stayed strong even when most tokens dropped.
Their use cases are growing, and Ethereum’s new privacy work gives them more attention.
Also, active analysts on X are even showing off privacy portfolio picks, adding more weight behind this hedge-like setup.
Because of this, some traders think this group can help them balance risk during a bear market.
They do not follow the same pattern as the rest of crypto, and they hold value when other areas struggle. That makes them a possible hedge if the market stays weak.