Zcash could reach $1,000 on privacy demand: Arthur Hayes

Arthur Hayes, former chief executive of BitMEX, has forecast that Zcash could reach a four-figure price level, citing privacy narrative demand, institutional interest, and supply dynamics, according to public statements made in December.

The cryptocurrency has reportedly gained approximately 40 percent since Hayes issued the forecast, according to market data. Zcash returned to market attention following Hayes’ projection that the privacy-focused digital asset could reach the $1,000 threshold as its first major price target.

Zcash has advanced nearly 14% over the past month and recorded annual gains of more than 748%, outperforming most large-cap cryptocurrencies.

Hayes described the four-figure price level as an initial target rather than a final destination, according to his December public post. The former exchange executive noted that price pullbacks toward the low hundreds remain possible despite the bullish outlook.

Several structural factors underpin the positive forecast, according to market observers. Approximately 30 percent of Zcash’s circulating supply now resides in shielded addresses, reflecting increased demand for private transactions, on-chain data indicates.

Institutional activity has increased in late 2025, with Grayscale launching a dedicated Zcash investment fund, according to company announcements. Additional firms have disclosed substantial purchases and accumulation plans, including intentions to hold significant percentages of the total supply, regulatory filings show.

Hayes identified Zcash’s late-2025 halving event as a supply inflection point that could reduce token issuance and contract available liquidity, according to his statements. Technical analysts are monitoring key resistance levels in the mid-hundreds, with a confirmed breakout potentially opening paths toward the high hundreds and a four-figure level by mid-2026, market commentary indicates.

The market structure remains sensitive to leverage and liquidation events, presenting ongoing risks, analysts noted. Regulatory pressure on privacy coins represents a significant concern, with potential coordinated enforcement actions capable of driving prices back to the low hundreds, according to market participants.

Liquidity access remains restricted on regulated trading venues, Hayes stated. Decentralized exchanges may handle future demand, though thinner order books could amplify volatility, according to his analysis.

The recent rally has been driven by a combination of narrative strength, supply dynamics, institutional accumulation, and liquidation-driven price discovery, market observers reported.