BTC Heads Back Toward $79K as Zcash ETF Sees Massive Inflows

Bitcoin recovered after slipping below $78,000, while Zcash continued to outperform the broader crypto market as Grayscale’s recently launched exchange-traded fund crossed $500 million in assets.

BTC fell to $77,666 on Tuesday before rebounding toward $78,900 during early Asian trading Wednesday, according to CoinDesk data. The move left Bitcoin little changed over the previous 24 hours, although it remained nearly 2% higher on the week.

Zcash, meanwhile, saw significantly stronger momentum. Grayscale said its Zcash ETF, trading under the ZCSH ticker on NYSE Arca, surpassed $500 million in assets just two weeks after beginning trading on Aug. 25.

The fund has recorded more than $70 million in cumulative inflows since its launch, in addition to a $100 million investment from DCG International Investments. Its holdings have climbed above 550,000 ZEC, equivalent to about 3% of Zcash’s 16.9 million circulating supply.

ZEC rose above $1,180 on Tuesday, gaining more than 4%. The token recorded roughly $1 billion in 24-hour trading volume, while its market capitalization reached approximately $20 billion. The surge has lifted Zcash into the cryptocurrency market’s top 10 assets by value over the past week.

Among other major cryptocurrencies, BNB gained nearly 2% to around $755. Tron advanced more than 1% to approximately 34 cents, while XRP added about 1% to $1.42. Ether hovered near $2,490 and Solana around $103, with both largely unchanged. Dogecoin remained close to 9 cents, while Hyperliquid’s HYPE moved toward $86. The total crypto market value was roughly $2.8 trillion.

Broader markets remained sensitive to geopolitical developments and interest-rate expectations. Brent crude approached $100 a barrel after U.S. strikes on Iranian tankers near Kharg Island, followed by missile retaliation and Houthi attacks against Saudi refining infrastructure. Gold traded near $4,407 an ounce, about 30% above its level a year earlier.

Treasury yields stayed elevated, with the 10-year yield near 4.8% and the two-year yield above 4.3%. CME FedWatch data showed traders pricing in approximately a 60% chance of a Federal Reserve rate hike at the following week’s meeting.

Jasper De Maere, an OTC trader at Wintermute, said current crypto price action is being influenced more by interest-rate expectations than by developments within the digital-asset sector.

He expects volatility to increase later in the week as investors assess the final economic indicators before the Fed’s Sept. 15-16 policy meeting. De Maere identified $75,000 and $82,000 as important Bitcoin levels ahead of the FOMC decision.

Thursday’s producer price index and Friday’s consumer price index will provide the final major economic signals before the meeting. Core CPI is expected to ease to 2.4%.

Bitfinex analysts also identified ETF flows as a key factor to watch. They said the market will be assessing whether crypto ETF inflows remain positive through the Sept. 9 Treasury buyback and Sept. 11 CPI release while the two-year Treasury yield remains above 4.34%.

If investors continue adding to crypto positions despite elevated short-term Treasury yields, the analysts said it could indicate that markets are becoming less constrained by expectations surrounding the Federal Reserve’s policy rate.