Privacycoins, Zcash (ZEC) and Monero (XMR), have outperformed major cryptocurrencies in the past 24 hours. The sudden rise in the price of these cryptocurrencies appears to be a response to recent developments surrounding the Russia-Ukraine conflict and the signing of an executive order by the US Joe Biden government.
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At the time of writing, Zcash (ZEC) is trading 11.7% gain at $142 while Monero (XMR) is trading 15.5% gain at $195. These cryptocurrencies have followed the general sentiment in the crypto market, which has turned to a more positive position as Bitcoin breaks above $41,000.
FTX’s Privacy Index with moderate gains on the daily chart. Source: Trading Display
Zcash and Monero Respond to a FED Coin
As mentioned, US President Joe Biden has signed an executive order that is surprising for his positive approach to cryptocurrencies and digital assets. As the war between Russia and Ukraine continues, the International Community has swiftly imposed financial sanctions on Putin, the Russian elite and its banking system.
As Executive Director of Coin Center, Jerry Brito said, the mainstream media has spread a negative story about cryptocurrencies. Classifying them as “dangerous”, and with the potential to allow Russia to evade sanctions. Fortunately, some US government officials have also looked at the other side of the coin.
The core message in this executive order, as Brito said, is serious recognition by the US federal government of cryptocurrencies as legitimate assets. The crypto market seems to have gotten used to negative or nothing news from the US, so why this news could have translated into a rally of relief.
Jake Chervinsky, head of policy at the Blockchain Association, commented the following about Biden’s executive order and why it was viewed as optimistic by market participants:
Anyone concerned that President Biden’s executive order would spell doom and gloom for crypto can now relax completely. The main concern was that the EO might enforce rushed regulations or impose new and bad restrictions, but there is no such thing here. It’s about as good as we could ask for.
In addition to the overall rise in cryptocurrencies, privacy coins like Zcash and Monero appear to have benefited from the shift in the story. The executive order is also considering the creation of a US Central Bank Digital Currency (CBDC).
These assets have been seen as the opposite of Bitcoin, Zcash and Monero. Instead of giving individuals power over their finances, they seem to give governments absolute control and supervision of the national currency. This is why some investors may have decided to increase their ZEC and XMR holdings.
POTUS: “My Administration Places the Highest Urgency in Research and Development Efforts on the Potential Design and Implementation Options of a CBDC in the United States”
It’s worth noting that this entire executive order on digital assets is heavy on CBDCs, making no mention of Bitcoin pic.twitter.com/PuXtVI34hD
— Alex Gladstein 🌋 ⚡ (@gladstein) March 9, 2022
Privacy About to get more relevance?
Other privacy coins have seen a similar rally, with Dash (DASH) posting a 12.8% gain over the past day. Oasis Network (ROSE), Secret (SCRT), Horizen (ZEN) and Keep Network (KEEP) averaged comparable profits over the same period.
In short spans of time, Material Indicators data suggests retail investors have led the ZEC and XMR rallies. Investors with a bid order of about $100 injected nearly $1 billion in liquidity into the ZEC/USDT trading pair.
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The XMR/USDT trading pair has seen a similar story. Retail investors are also leading the rally in short periods of time.
Retail investors (yellow line on chart) are leading the rally above all other classes. Source: Material Indicators