Zcash Rises 3 Percent on Macro Relief and Altcoin Rotation

Zcash (ZEC) has climbed around 3% in the past 18 hours, driven by a mix of improving macroeconomic conditions, altcoin rotation, and ongoing developments related to its NU7 upgrade and ETF flows. The shift in Federal Reserve expectations played a significant role, as weaker U.S. economic data and comments from a Fed official reduced the likelihood of an October rate hike. This repricing boosted the overall crypto market, with Zcash rising about 1% to roughly $1,343 as part of the broader rally.

Meanwhile, smaller altcoins like Zcash have outperformed Bitcoin (BTC), which has remained range-bound near $85,900. Reports highlight that ZEC gained nearly 2.5%, reaching above $1,350, alongside other mid-cap altcoins such as FIL and ZRO. This rotation into smaller names provided additional momentum for Zcash.

On the Zcash-specific front, progress on the NU7 upgrade and ETF flow dynamics continue to influence sentiment. The NU7 upgrade, which aims to reduce block spacing and introduce a fee-reserve mechanism, is currently in the public testnet phase with a mainnet activation targeted for early November. Additionally, while ZEC’s ETF inflows have slowed, the rate of outflows has also eased, contributing to modest gains since Sunday.

The recent price movement aligns with a broader macro and narrative setup rather than a single new headline. The combination of reduced Fed hike expectations, altcoin rotation, and ongoing protocol upgrades has created a constructive environment for Zcash, supporting its recent gains.