Zcash (ZEC) has taken a sharp hit after an intense surge that captured the attention of traders across the cryptocurrency market. The privacy‑focused token fell 15% to $144, extending its drop for a second consecutive day after soaring to $176, its highest point since April 2022.
Despite the recent pullback, Zcash remains one of the top‑performing digital assets this month. Data from CoinGecko shows that ZEC is still up 120% in the past week, with an impressive 196% gain in 14 days and a massive 203% rise over 30 days.
Grayscale’s Announcement Fuels Speculative Frenzy
The remarkable rally started after Grayscale announced the launch of a Zcash trust at the beginning of October. The investment vehicle allows eligible investors to gain exposure to ZEC through a regulated platform, boosting confidence and attracting institutional attention.
According to Messari, Zcash also dominated social discussions, recording a 1,000 % spike in “weekly mindshare” on X. The sudden rise in online mentions fueled speculation and further amplified price activity, pushing the coin into overbought territory.
Zcash leads weekly mindshare with a 1,000% increase, while its price has risen by 162.55%.
Mindshare free access expires in 5 days. Upgrade now. pic.twitter.com/oIycJgVJzn
— Messari (@MessariCrypto) October 3, 2025
Analysts Link Zcash Surge to Bitcoin Market Tops
However, analysts warn that such rapid increases often come with risks. Market analyst Maartunn observed that Zcash rallies have historically coincided with local or cycle tops in Bitcoin. These movements, he added, often signal caution for traders expecting further upside in the broader market.
Bitcoin, meanwhile, hit a new record above $126,000 on Monday before easing by 1.7 % to $123,180. The surge was driven by strong spot ETF inflows and a decline in exchange balances, reflecting continued institutional demand despite minor corrections.
ZCash (ZEC) pumps are usually a red flag for Bitcoin
Historically, these altcoin surges tend to happen near local & cycle tops. pic.twitter.com/XkL3Secar9
— Maartunn (@JA_Maartun) October 7, 2025
Analysts Warn of Overheating as Market Cools
Zcash’s reversal highlights growing caution among investors following one of the most aggressive rallies seen in recent months. Analysts believe the token’s sharp rise, coupled with Bitcoin’s record highs, points to a heated market phase rather than sustainable momentum.
While Zcash remains well below its all‑time high of $3,191 set in 2016, its recent performance underscores the volatility surrounding speculative crypto assets. As market sentiment cools, traders are now watching whether Zcash’s pullback signals a broader slowdown or merely a temporary correction in an otherwise bullish cycle.