Raoul Pal Highlights Capital Rotation as Key to Zcash Rally

Zcash’s Recent Performance

According to Raoul Pal, the founder of Real Vision and knowledgeable macro investor, the recent surge in Zcash might not be indicative of a lasting market bull trend but rather attributed to capital rotation.

Pal noted that the crucial indicator of whether Zcash is poised for a rally depends on its ability to maintain its gains during a general market upward trend.

“Do I need that asset to say I was in earliest? I don’t really,” Pal expressed during his conversation with Kevin Follonier on the When Shift Happens podcast, released on Thursday.

The cryptocurrency Zcash (ZEC) has experienced substantial growth this year, though Pal emphasized that it’s premature to declare this rally as the start of an extensive upward trend.

“We can’t prove it until the whole market goes up and it continues to trend and not a rotation,” he remarked. “Right now it’s confirming the rotation thesis.”

Zcash’s Current Market Status

Currently, Zcash is priced at $385.81, reflecting a staggering rise of 699.07% since the beginning of this year. However, in recent weeks, momentum has decelerated, and the token’s value has decreased by about 37% in the past month.

Raoul Pal spoke to Kevin Follonier on the When Shift Happens podcast on Thursday. Source: YouTube

Pal indicated that the primary concern is whether Zcash can form a robust floor price following its recent price surge. He mentioned, “You want to see whether it finds a base and then starts pulling up again.” He also indicated hesitation to invest in the cryptocurrency at its current price levels but suggested he might buy during a future downturn.

Despite Zcash’s project of price increases, the overall cryptocurrency market is witnessing a downturn. The market cap of Zcash surged from under $1 billion in August to more than $7 billion recently.

Growing Interest in Privacy Tokens

The increasing focus on privacy among crypto market participants has recently elevated the status of privacy tokens, noted crypto exchange XT Exchange on November 9.

Just a month ago, Zcash’s price shot up by 30% within 24 hours, driven by predictions from Arthur Hayes that it could reach $10,000.

There’s also growing institutional interest in Zcash. On November 27, Grayscale Investments filed with the US SEC to convert its Zcash fund into a spot ETF, which follows the company’s rollout of other spot ETFs tied to cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and XRP.