Zcash Jumps 23% While Bitcoin and Major Cryptocurrencies Advance Despite Fed Hike

Zcash jumped 23% in the last 24 hours as major cryptocurrencies advanced after the Federal Reserve raised interest rates for the first time since 2023. Bitcoin held above $76,000 as investors assessed the Fed’s signal that only modest additional tightening may be ahead.

ZEC traded near $1,369, while Bitcoin edged less than 1% higher to around $76,258. Solana gained almost 3% to just under $100. BNB and HYPE, the native token of Hyperliquid, climbed more than 2% each, while Ether, XRP and Dogecoin added between 1% and 2%.

The sharp move in ZEC came after Matt Huang, co-founder of crypto investment firm Paradigm, discussed Zcash’s potential role alongside Bitcoin. In an X post, Huang described the cryptocurrency as a privacy complement to Bitcoin and disclosed that Paradigm holds ZEC.

Zcash is designed to allow users to make transfers without publicly disclosing who sent the funds, who received them or the amount involved. Zcash holders recently approved proposals aimed at making transactions faster while maintaining scheduled reductions in new coin issuance, a feature also used by Bitcoin.

Huang said he favors continued funding for Zcash developers and called the cryptocurrency “a private complement to Bitcoin.” He also argued that decisions over changes to the network should incorporate governance methods beyond votes by ZEC holders.

The broader crypto market moved higher after the Fed lifted its benchmark rate by 25 basis points, taking the target range to 3.75%–4%.

Higher interest rates raise financing costs and can reduce liquidity available for speculative assets. They also increase the relative attractiveness of interest-bearing cash and government securities compared with Bitcoin, which does not pay income to holders.

However, markets can react positively to an expected rate hike when investors believe the central bank is nearing the end of its tightening cycle. The Fed’s median projection puts the policy rate at 4.1% at the end of both 2026 and 2027, implying another 25-basis-point increase this year.

Jeff Ko, chief analyst at ViaBTC, said the latest rate increase was largely priced into markets. He said the Fed appears to be signaling that an aggressive tightening cycle is not currently expected, while investors seem reassured by the central bank’s efforts to bring inflation under control.

U.S. equity futures and Asian stocks also gained. S&P 500 futures rose 0.6%, Nasdaq 100 futures climbed 0.7% and Asian equities increased 0.3%. The two-year Treasury yield declined two basis points to 4.71% after touching its highest level since 2024 in the prior session.