Raoul Pal says capital rotation could be fuelling Zcash boom

cointelegraphPublished on 2025-12-19Last updated on 2025-12-19

Abstract

Real Vision founder Raoul Pal suggests the recent surge in privacy-focused cryptocurrency Zcash (ZEC) is more likely due to capital rotation rather than the start of a sustained bull trend. While Zcash is up over 699% year-to-date, its price has declined approximately 37% in the past month. Pal states it is too early to confirm a broader uptrend and that the key signal to watch is whether the asset can establish a strong base price before moving higher again. He is not eager to buy at current levels but might consider it in a future down cycle. The token's rise follows increased institutional interest, including a Grayscale filing to convert its Zcash fund into a spot ETF, and a price surge after a prediction by Arthur Hayes that it could reach $10,000.

The recent surge in privacy-focused cryptocurrency Zcash may be driven more by capital rotation than a sustained structural bull trend, says Real Vision founder and macro investor Raoul Pal.

“Do I need that asset to say I was in earliest? I don’t really,” Pal told Kevin Follonier on the “When Shift Happens” podcast published on Thursday.

The privacy-focused token Zcash (ZEC) has seen significant gains this year, but Pal said it is still too early to say whether its rally represents the beginning of a broader uptrend.

“We can’t prove it until the whole market goes up and it continues to trend and not a rotation,” he said. “Right now it’s confirming the rotation thesis.”

Zcash will need to find “a base” first

Zcash is trading at $385.81, up 699.07% since Jan. 1, according to CoinMarketCap. However, momentum has slowed down in recent weeks. Over the past 30 days, the token’s price has declined by approximately 37%.

*Raoul Pal spoke to Kevin Follonier on the When Shift Happens podcast on Thursday. Source:* *YouTube*

Pal said the primary signal to watch will be whether Zcash can establish a strong floor price after its recent run-up. “What you want to see is whether it finds a base and then starts pulling up again,” he said. Over the past 30 days, Zcash’s price has declined by around 37%.

Pal said he is not eager to buy the crypto asset at current levels. “I’m not sure I’m going to chase it, but I might buy it in the next down cycle,” Pal said.

Zcash was posting price gains despite the broader crypto market being in decline. Its market capitalization rose from under $1 billion in August to a peak above $7 billion in early November.

Zcash saw a massive surge after Arthur Hayes’ tip

A growing number of crypto market participants have been prioritizing anonymity in recent times which has pushed privacy tokens into “the spotlight,” crypto exchange XT Exchange said on Nov. 9.

Zcash institutional interest has increased in recent times

Just a month earlier, on Oct. 26, Zcash rose 30% in 24 hours after crypto entrepreneur Arthur Hayes predicted the token could eventually reach $10,000.

Related: Anxiety of quantum risk to Bitcoin is weighing on its price: Execs

Meanwhile, institutional interest in the crypto asset has also increased.

On Nov. 27, Grayscale Investments submitted a filing to the US Securities and Exchange Commission, signaling its intention to convert its fund tied to Zcash into a spot ETF.

The move followed Grayscale’s launch of other spot ETFs linked to cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Dogecoin (DOGE), and XRP (XRP).

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