- Zcash rallied 8%, and HYPE gained 5%, outperforming Bitcoin’s 2% rise ahead of the Fed decision.
- Zcash recorded 10,692 transactions on October 27, up 20.3% daily, while shielded transactions rose 55.2%.
- The Altcoin Season Index stood at 61, below the 75 threshold, while Bitcoin dominance remained at 59.5%.
Zcash (ZEC) climbed 8% on Wednesday as several major altcoins outperformed Bitcoin ahead of the Federal Reserve’s October 28 policy decision. HYPE gained 5%, while XRP and DOGE rose about 3% each. Bitcoin also advanced 2% to roughly $81,489, suggesting the gains extended beyond a single asset even as ZEC and HYPE led the move.
However, the gains do not confirm a capital rotation from Bitcoin into altcoins. The key question is whether ZEC and HYPE are seeing stronger buying interest or benefiting from leveraged trading ahead of the Fed decision.
Zcash and HYPE Outperform Bitcoin Ahead of the Fed Decision
Zcash traded near $1,322, with $878.3 million in 24-hour volume at press time. That puts ZEC about six percentage points ahead of Bitcoin on the day. The ZEC/BTC ratio rose about 6.4% over 24 hours. This shows the token is gaining value against Bitcoin and not just riding a general rebound.
Network activity also jumped alongside price. Zcash recorded 10,692 transactions on October 27, up 20.3% from the previous day, and shielded transactions climbed 55.2%. However, these figures alone do not establish whether increased buying demand drove the rally.
HYPE also outperformed Bitcoin, trading at $81.40 alongside $333.3 million in perpetual futures volume on Hyperliquid. That figure reflects derivatives activity rather than spot purchases, so futures positioning is another factor to consider when assessing the rally’s strength.
Follow us on X for real-time crypto updates.
Short Liquidations May Be Adding to the Rally
Derivatives data points to short liquidations as a possible contributor to Zcash’s price advance. Open interest across seven exchanges reached approximately $2.22 billion, up 13% in 24 hours. During the same period, reported liquidations totaled $8.96 million, of which $8.29 million came from short positions
HYPE showed a similar pattern, although its reported liquidation totals were smaller. Of $535,300 in liquidations, $517,270 came from short positions, while open interest increased 4.96%. Funding rates for both tokens remained slightly positive.
The figures suggest that bearish positions were being forced to close as prices rose, potentially adding buying pressure.
Is Zcash Strength Pointing to a Broader Market Recovery?
Despite the gains in ZEC and HYPE, broader market indicators offer limited evidence of a widespread altcoin recovery. The Altcoin Season Index stands at 61 out of 100, below the 75 threshold commonly used to indicate altcoin season, while Bitcoin dominance remains at 59.5%.
This suggests that the rally remains concentrated in selected assets rather than reflecting a broad shift across the altcoin market. Zcash’s rising network activity and the concentration of short liquidations provide useful context for its performance, but neither confirms that a sustained market-wide recovery is underway.
The Fed’s decision could determine whether the rally continues. A dovish stance may support further gains, while a hawkish surprise could pressure leveraged positions. For now, ZEC and HYPE’s outperformance remains a selective rally, not a confirmed altcoin recovery.
Subscribe to our YouTube channel for the latest crypto news.
Related: Zcash Price Prediction: ZEC Rally Faces Pressure as Co-Founder Proposes Ending Grants Funding
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
