Zcash rose 23% over 24 hours as Bitcoin and other leading cryptocurrencies posted gains following the Federal Reserve’s latest interest-rate decision. Bitcoin traded above $76,000 after the Fed’s projections pointed to relatively limited additional tightening.
ZEC changed hands near $1,369, while Bitcoin was up less than 1% at about $76,258. Solana advanced nearly 3% to just below $100. BNB and HYPE, the token associated with crypto trading platform Hyperliquid, both gained more than 2%. Ether, XRP and Dogecoin recorded gains ranging from 1% to 2%.
Zcash’s sharp advance came as Matt Huang, co-founder of crypto investment firm Paradigm, commented on the token’s relationship with Bitcoin. In a post on X, Huang called Zcash a privacy complement to Bitcoin and disclosed that Paradigm holds ZEC.
The Zcash network allows users to transfer funds without publicly revealing the sender, recipient or transaction amount. Recently approved proposals from Zcash holders seek to improve transaction speeds while maintaining scheduled reductions in new coin issuance, a feature similar to Bitcoin’s halving process.
Huang said he supports continued funding for Zcash developers and described the cryptocurrency as “a private complement to Bitcoin.” However, he also said network decisions should use governance mechanisms beyond votes by token holders.
The wider cryptocurrency market gained after the Fed increased its benchmark interest rate by 25 basis points, taking the target range to 3.75%–4%.
Rate increases generally raise borrowing costs and can reduce funds available for speculative investments. Higher yields on cash and government debt can also make those assets more appealing than Bitcoin, which does not provide income simply by being held.
Despite those pressures, crypto assets can rise after a widely anticipated rate hike when investors believe the central bank has limited room for further increases. The Fed’s median projection sees the policy rate at 4.1% at the end of both 2026 and 2027, suggesting another quarter-point hike this year.
Jeff Ko, chief analyst at ViaBTC, said Wednesday’s rate increase was largely reflected in market expectations. He said the Fed appears to be signaling that it does not currently anticipate an aggressive tightening cycle, while investors seem reassured by its efforts to bring inflation under control.
Risk assets also moved higher. S&P 500 futures gained 0.6%, Nasdaq 100 futures rose 0.7% and Asian equities added 0.3%. The two-year Treasury yield slipped two basis points to 4.71% after reaching its highest level since 2024 in the previous session.
