Zcash Rallies 10% as Bitcoin Consolidates Around $87K

A drop in oil prices helped calm inflation concerns during Asian trading, while U.S. legislation aimed at creating a permanent Strategic Bitcoin Reserve advanced further through Congress.

Zcash (ZEC) gained 10% to trade above $1,616 on Wednesday, leading the major crypto assets in gains, according to CoinDesk data.

Bitcoin held around $86,900, up 1% over the previous 24 hours. XRP rose 6% to just above $1.62, while HYPE climbed 4% to almost $97. DOGE gained 4%, and ether, BNB and SOL each added less than 1%. TRX bucked the broader move, falling 1%.

Market analysts pointed to fresh developments from Washington as one factor behind the positive tone. The House Financial Services Committee approved the American Reserve Modernization Act on Sept. 17 by a 28-21 vote, moving the measure closer to a full House vote.

At the same time, the Securities and Exchange Commission has advanced work on tokenized equities while the CLARITY Act remains stalled in Congress. The regulator used an innovation exemption to establish a route for onchain trading of tokenized U.S. stocks within 24 hours.

Tony Dicarlo, director of institutional propositions at RootstockLabs, said the SEC’s move has supported tokenization-related digital assets and strengthened sentiment across the wider crypto market.

“Technically, Bitcoin’s back above its 50 & 200 week moving averages, up ~29% in 35 days,” Dicarlo said in an email to CoinDesk.

Dicarlo also pointed to the American Reserve Modernization Act, saying its committee approval had revived discussion around the Strategic Bitcoin Reserve. The bill has progressed further through Congress than earlier proposals, but it still needs votes in both the House and Senate.

If passed, the measure would place about 325,000 bitcoin already held by the U.S. government into a Strategic Bitcoin Reserve at the Treasury. Most of the holdings were acquired through criminal and civil forfeitures.

The proposal would require the bitcoin to remain in the reserve for a minimum of 20 years and introduce quarterly audits to verify that the holdings remain in place. It would also require a study into potential methods of purchasing additional bitcoin without adding to the federal deficit.

Elsewhere, falling energy prices supported Asian bond markets. Australian and New Zealand 10-year government bond yields each declined by at least three basis points, while 10-year Treasury futures rose. Cash Treasury markets in the U.S. were closed for a Japanese holiday.

Brent crude fell to around $99 a barrel, extending its decline to six consecutive sessions, its longest losing streak in a year. The latest weakness came after President Donald Trump said U.S. officials had a “very good” meeting with Iranian representatives in New York as Washington sought to revive efforts to end the conflict.

Japan’s central bank raised interest rates last week in a 7-2 vote. The split led traders to expect a measured approach to additional tightening. The yen has weakened since the decision, keeping Japanese funding relatively inexpensive and allowing capital to continue supporting risk-oriented markets.