Bitcoin News Update: Hayes Moves Crypto Holdings to Zcash, Anticipates Surge Fueled by Privacy

BitMEX co-founder Arthur Hayes has ramped up his activity in the crypto sector, moving $2.5 million worth of

(ETH) and associated tokens to major institutional market makers such as Flowdesk, FalconX, and Wintermute, . The transfers included 520 (valued at $1.66 million), 2.624 million tokens ($730,000), and 132,000 ETHFI ($120,000), sparking rumors that Hayes is cashing out to increase his holdings in (ZEC). Hayes, a prominent supporter of during the recent surge in privacy coins, has frequently emphasized its potential to overtake Ripple (XRP) in market cap, stating on X, " " and predicting the price could reach between $10,000 and $20,000 per token.

Hayes' recent moves coincide with a broader (BTC) slump, as the asset has dropped 25% from its peak since October. , Hayes attributed this drop to shrinking U.S. dollar liquidity, rather than to political or macroeconomic events, likening the situation to unpredictable winter weather in Hokkaido. He pointed out that Bitcoin acts as a "free-market barometer" for global fiat liquidity, noting his proprietary USD Liquidity Index has declined by 10% since April, overshadowing short-term ETF inflows and Digital Asset Treasury (DAT) activity. Hayes cautioned that without fresh liquidity, Bitcoin may need to fall further to match the tightening environment.

Recent market turbulence has been driven by profit-taking, institutional withdrawals, and broader economic uncertainty,

down to a 10-point "extreme fear" reading—the lowest since late February. Despite these challenges, Hayes remains optimistic for the long run, forecasting that ongoing monetary stimulus, especially in the lead-up to the 2026 U.S. midterm elections, will restore liquidity and push Bitcoin higher. His perspective is in line with wider industry expectations, , as central banks worldwide are set to inject over $500 billion in liquidity before the year concludes.

Hayes' advocacy for Zcash is also gaining momentum, with the Maelstrom Fund now holding Zcash as its second-largest liquid asset after Bitcoin. He believes ZEC could capture 10% to 20% of Bitcoin's market capitalization in this cycle,

. This view stands in contrast to recent institutional strategies, such as through BlackRock's IBIT, which highlights growing interest in crypto from traditional finance.

Although the short-term outlook remains uncertain, Hayes' emphasis on liquidity trends and privacy-focused assets like ZEC signals a notable shift in market strategy.

that the current downturn could act as a "filtering phase," eliminating speculative positions and strengthening long-term conviction. Whether Bitcoin can recover by year-end will hinge on the balance between new liquidity and institutional participation—a scenario Hayes seems ready to navigate with his trademark contrarian approach.