Bitcoin crossed the $81,000 mark on September 5, but the crypto market’s most notable breakout came from privacy coins. Zcash held around $1,000, Dash surged over 40% in 24 hours, and Monero also outperformed Bitcoin over the week, signaling that capital flows are prioritizing privacy-focused tokens.
Zcash became the centerpiece after investors gained a new access point through Grayscale’s ZCSH product on NYSE Arca. ZEC’s rally subsequently spilled over to Dash and Monero, positioning privacy coins as the leading sector in the market’s latest rebound.
Zcash Becomes the Rally’s Centerpiece
Zcash traded around $1,025 on September 5, holding near the psychological $1,000 following a strong weekly run. CoinGecko data shows ZEC up roughly 9.5% in 24 hours and 28.1% over seven days, far outstripping Bitcoin’s 2.7% gain in the same period.
ZEC Chart Price (4H). Source: TradingView
The rally pushed ZEC’s market capitalization to approximately $17.3 billion, with a 24-hour trading volume near $1.3 billion. Over 30 days, the token gained around 102.8%, while its one-year gain exceeded 2,400%, making Zcash one of the standout performers among privacy coins during the current recovery.
ETF Inflows Give the Move a Catalyst
Zcash’s momentum gained extra support after Grayscale listed the ZCSH product on NYSE Arca in late August. According to SEC filings, the Grayscale Zcash Trust was renamed The Zcash ETF and began trading under the ticker ZCSH on August 25, 2026.
ZCSH opens a new route to ZEC via traditional brokerage accounts, removing the need for investors to buy tokens directly on crypto exchanges or self-custody their assets. For privacy coins, an asset class that frequently faces listing and compliance hurdles, having a product trade on NYSE Arca helps Zcash stand out in the sector.
As of September 3, ZCSH held roughly $414.7 million in assets under management and about 428,613 ZEC. The product has also logged at least $34.4 million in net inflows since launch, with September 2 marking its largest single-day inflow at around $12.6 million.
Liquidations Push ZEC Higher
Leverage accelerated ZEC’s upward move once the token cleared $1,000. Recent liquidation data shows roughly $31.45 million in ZEC positions liquidated within 24 hours, with $26.46 million coming from short positions.
The overwhelmingly short-leaning ratio indicates that the surge placed heavy pressure on traders betting on price declines. As these positions were forced to close, added buying pressure joined the upward price move, making ZEC’s rally even steeper.
Zcash liquidation in 24h. Source: Coinglass
The momentum then spread to other privacy coins. Dash traded around $65.88, up roughly 44.6% in 24 hours and over 70% in seven days, with a 24-hour trading volume of about $535 million. Monero saw more modest gains compared to Zcash and Dash, but still moved alongside the privacy sector’s bounce. XMR traded around $530.92, up 4.7% in 24 hours and 13.2% over seven days.
This divergence helped privacy coins stand out from the broader market, though the sharp gains also leave the group vulnerable to volatility if traders begin taking profits.
Bitcoin Sets the Backdrop, Risks Remain
Bitcoin continues to serve as the backdrop for the broader recovery, even as its gains lag far behind privacy coins. BTC briefly crossed $81,000 before pulling back to around $79,600, trading in a 24-hour range of $78,706-$81,379. The $80,000-$81,000 zone will be key to watch if the market attempts to extend its risk-on sentiment to larger assets.
The biggest risk lies in the specific nature of privacy coins. This asset class is typically highly volatile and sensitive to regulatory concerns, particularly regarding anti-money laundering (AML) compliance. Exchanges in various jurisdictions have previously restricted or delisted privacy tokens, meaning capital inflows into the sector can reverse faster than in major crypto assets.
In the short term, the privacy coin rally will depend on whether demand for ZCSH persists, alongside ZEC’s ability to defend the $1,000 level following the initial wave of forced buying. If buying pressure cools, the sector that led the rally could also face the heaviest profit-taking pressure.
