Zcash jumped 23% in 24 hours as Bitcoin and other major cryptocurrencies moved higher following the Federal Reserve’s latest rate decision. Bitcoin held above $76,000 after the central bank signaled that additional tightening could remain limited.
ZEC was trading near $1,369, while Bitcoin rose less than 1% to roughly $76,258. Solana climbed almost 3% to just below $100, while BNB and HYPE, the native token of Hyperliquid, gained more than 2% each. Ether, XRP and Dogecoin advanced between 1% and 2%.
The move in Zcash came as Paradigm co-founder Matt Huang discussed the cryptocurrency’s potential role alongside Bitcoin. Huang said on X that Zcash serves as a privacy-focused complement to Bitcoin and revealed that Paradigm owns ZEC.
Zcash enables users to transfer funds without publicly disclosing the parties involved or the amount being sent. Its community recently approved proposals designed to accelerate transactions while preserving scheduled reductions in new coin issuance, similar to Bitcoin’s halving mechanism.
Huang expressed support for continued developer funding and described Zcash as “a private complement to Bitcoin.” At the same time, he argued that decisions about network upgrades should not rely solely on token-holder votes and should incorporate other governance mechanisms.
The broader crypto market recovery followed the Fed’s quarter-point rate increase, which lifted its benchmark target range to 3.75%–4%.
Higher borrowing costs can reduce the amount of capital available for speculative investments and make yield-generating assets such as cash and government debt more attractive than Bitcoin. Still, cryptocurrencies can gain after an expected rate hike if markets conclude that the central bank is nearing the end of its tightening cycle.
The Fed’s median forecast places the policy rate at 4.1% at the end of both 2026 and 2027, implying one more 25-basis-point increase this year.
Jeff Ko, chief analyst at ViaBTC, said Wednesday’s hike was largely anticipated by investors. He said the Fed appears to be indicating that it does not currently expect an aggressive tightening campaign, while markets have responded positively to the central bank’s efforts to control inflation.
U.S. stock futures also advanced, with S&P 500 futures up 0.6% and Nasdaq 100 futures gaining 0.7%. Asian equities increased 0.3%. The two-year Treasury yield declined two basis points to 4.71% after reaching its highest level since 2024 during the previous session.
