Monero and Zcash just posted a week of gains while Bitcoin slid. At first glance, it looks like the privacy-focused coins are having a moment. But a closer look reveals two very different stories playing out with opposite implications for what comes next.
For the week ending October 25, Zcash rose 7.5%. Monero gained 3.8%. Bitcoin fell 2%. The reasons behind these moves tell you more about the unique pressures on each asset than any broad crypto trend.
Bitcoin’s recent weakness ties directly to the traditional financial world. When Brent crude oil prices jumped above $111 a barrel on October 22, it sparked fresh inflation worries. That kind of macroeconomic stress typically cools investor appetite for speculative assets including cryptocurrencies. Stocks dipped on doubts over AI spending. Bitcoin, often seen as a risk-on benchmark, followed suit dropping to $79,107.
Privacy coins operate on a different logic. Their core value proposition is anonymity, shielding the sender, receiver, and amount of every transaction. This attracts a specific often more ideologically driven investor base. Their markets are thinner so smaller flows of money can create bigger price swings. This week, two distinct catalysts pushed Zcash and Monero in positive directions.
Zcash’s rise appears linked to an upcoming technical upgrade. The network’s NU7 upgrade tentatively scheduled for around November 5 promises to slash block confirmation times from 75 seconds to 25 seconds. Perhaps more importantly to investors, it will temporarily remove 60% of each block’s fees from circulation until 2031. This potential supply constraint is a classic bullish signal in crypto markets. We saw a clear reaction: ZEC’s price surged 16.5% from October 18 to October 21 climbing from $1,129 to $1,316.
However, this rally unfolded within a clear and ongoing downtrend. Since a September high near $1,693, Zcash has been making a pattern of lower highs and lower lows. The recent pop lacked sustained buying power. Daily trading volume which briefly spiked above 100,000 ZEC quickly faded. When a price jump isn’t backed by strong volume it often means new investors aren’t rushing in to support it. The bounce may be temporary. By October 24, ZEC was back at $1,207.
Monero’s story involves regulatory relief and a potent technological vision. In early October, the U.S. Financial Crimes Enforcement Network rescinded a proposal that threatened stricter rules for crypto mixing services. This was a clear win for privacy-preserving technologies like Monero lifting a cloud of regulatory uncertainty. The coin gained 13.6% over a 14-day period.
Its future also looks bright on the technical front. Developers are testing a major upgrade called FCMP++. This enhancement could obscure a transaction’s origin among over 150 million possible sources a dramatic leap from the current system’s pool of just 16. While still in testing, the potential for vastly stronger privacy is a powerful narrative for Monero’s dedicated community.
There’s another structural difference between these two privacy coins. Zcash is gaining mainstream financial access. The Grayscale Zcash ETF launched in late August allowing U.S. investors to buy ZEC through ordinary brokerage accounts. This institutional channel helps explain Zcash’s impressive 136.6% gain year-to-date. Monero faces the opposite problem. Regulatory scrutiny has led many centralized exchanges to delist it confining its trading to a more niche if fervent ecosystem.
So where does this leave us? The outlooks diverge sharply. Zcash’s recent rally looks fragile more like a technical reaction within a larger decline. If the NU7 upgrade faces delays past November 5, the momentum could evaporate quickly. For ZEC to signal a real trend change it needs a daily close above that recent peak of $1,316. A fall back below $1,048 would likely confirm the downtrend is firmly back in control.
Monero seems to have a steadier foundation. The regulatory pressure has eased and a major technological leap is on the horizon. Its path is more straightforward: the level to beat is its January peak of $797.73. A warning sign would be a week where Monero underperforms Bitcoin significantly suggesting its unique catalysts are no longer driving demand.
- Bitcoin fell 2%
- Zcash rose 7.5%
- Monero gained 3.8%
- Zcash’s NU7 upgrade scheduled for November 5
- Monero’s FCMP++ upgrade in testing
- Zcash’s 136.6% gain year-to-date
| Coin | Week Change | Year-to-Date Change |
|---|---|---|
| Zcash | +7.5% | +136.6% |
| Monero | +3.8% | N/A |
| Bitcoin | -2% | N/A |
In short both coins outperformed Bitcoin for a week but for different reasons and with different endurance. Zcash enjoyed a sugar rush from an upcoming upgrade but it’s running into a technical wall. Monero got a dose of regulatory sunshine and is building toward a more private future. One rally looks likely to fade. The other might just be getting started.
