Bitcoin recovered from a sharp Tuesday dip, while Zcash continued to outperform the broader crypto market as Grayscale’s newly launched exchange-traded fund surpassed $500 million in assets.
BTC dropped to $77,666 during Tuesday’s session after falling below $78,000. Buyers later stepped in, pushing the price back toward $78,900 by early Wednesday in Asian trading hours, according to CoinDesk data.
The recovery left Bitcoin largely unchanged over the previous 24 hours and nearly 2% higher over the past week. Zcash, however, remained the focus of investor attention after Grayscale announced that its Zcash ETF had crossed the $500 million asset mark just two weeks after its debut on NYSE Arca.
Trading under the ticker ZCSH, the fund has attracted more than $70 million in cumulative inflows since launching on Aug. 25. Grayscale said the figure is in addition to a $100 million investment made by DCG International Investments.
The ETF now holds more than 550,000 ZEC, equivalent to roughly 3% of Zcash’s 16.9 million circulating tokens. ZEC traded above $1,180 on Tuesday, gaining more than 4%, while its 24-hour trading volume approached $1 billion. With a market capitalization of about $20 billion, Zcash has climbed into the crypto market’s top 10 assets over the past week.
Elsewhere, BNB gained nearly 2% to around $755, making it one of the stronger performers among major cryptocurrencies. Tron rose more than 1% to approximately 34 cents, while XRP added about 1% to $1.42. Ether remained near $2,490 and Solana around $103, with both showing little movement. Dogecoin hovered around 9 cents, while Hyperliquid’s HYPE token moved slightly higher toward $86. The overall cryptocurrency market was valued at roughly $2.8 trillion.
Macro factors continued to influence risk assets. Brent crude approached $100 per barrel following U.S. strikes against Iranian tankers near Kharg Island, missile retaliation and Houthi attacks on Saudi refining facilities. Gold remained around $4,407 an ounce, putting it approximately 30% above its level from a year earlier.
Higher commodity prices have coincided with elevated Treasury yields, with the 10-year yield holding near 4.8% and the two-year yield above 4.3%. CME FedWatch data showed traders assigning roughly a 60% probability to a Federal Reserve rate hike at the following week’s meeting.
Jasper De Maere, an OTC trader at Wintermute, said crypto markets are currently responding more to interest-rate expectations than to digital-asset-specific developments.
He expects volatility to pick up later in the week as investors digest the remaining economic data ahead of the Fed’s Sept. 15-16 policy meeting. De Maere identified $75,000 and $82,000 as key Bitcoin levels heading into the decision.
The market will receive two important inflation-related indicators before the meeting: producer price data on Thursday and consumer price data on Friday. Core CPI is expected to ease to 2.4%.
Bitfinex analysts also highlighted cryptocurrency ETF flows as an important gauge for market sentiment. They said investors will be watching whether ETF inflows remain positive through the Sept. 9 Treasury buyback and Sept. 11 CPI release, despite the two-year Treasury yield remaining above 4.34%.
Continued crypto buying while short-term Treasury yields stay elevated could indicate that investors are becoming less sensitive to the Federal Reserve’s policy rate as the primary constraint on digital-asset demand.
