Crypto Markets Rally as US Government Shutdown Ends, Winklevoss Capital Backs Zcash with $58M Investment
Crypto Markets Rally as US Government Shutdown Ends, Winklevoss Capital Backs Zcash with $58M Investment
Global cryptocurrency markets experienced a positive surge following the resolution of the US government shutdown, which alleviated fiscal uncertainty and prompted investors to rotate back into riskier assets. Bitcoin rallied past $105,000, while Ethereum recovered towards $3,600. This macroeconomic relief was met with enthusiasm, though analysts cautioned about potential temporary gains.
Concurrently, significant institutional interest in privacy coins emerged with Winklevoss Capital leading a $58.88 million investment into Cypherpunk Technologies. This new entity aims to accumulate Zcash (ZEC), projecting it as 'encrypted Bitcoin' with substantial appreciation potential. Tyler Winklevoss highlighted ZEC's privacy features as critical in the digital age, with the company targeting ownership of at least 5% of the total ZEC supply.
Government Shutdown Ends, Boosting Crypto Confidence
United States President Donald Trump late Wednesday signed legislation that ended the country’s 43-day government shutdown, reopening federal agencies and restarting paused services. This breakthrough immediately resonated positively across risk assets, including the cryptocurrency market. Bitcoin climbed back toward the $105,000 area from lows near $99,300, representing a roughly 6.7% uptick. Ethereum also recovered toward $3,600 as investors rotated back into riskier assets. Market commentators noted that the end of the shutdown reduced macro uncertainty, making it easier for large funds and ETFs to move money without the risk of sudden policy disruption. However, several analysts warned that gains tied to the shutdown’s end could be temporary, with volatility potentially returning if political gridlock reemerges.
Winklevoss Capital Invests $58M in Zcash Treasury Strategy
In a major development for the privacy-focused cryptocurrency sector, Cypherpunk Technologies officially launched a $50 million Zcash (ZEC) digital asset treasury (DAT) strategy, backed by a $58.88 million private placement led by Winklevoss Capital. The company, which recently rebranded from Leap Therapeutics, has acquired 203,775 ZEC at approximately $245.37 per token, totaling $50 million, and plans to accumulate ZEC to own at least 5% of the total supply. Douglas E. Onsi, President and CEO of Cypherpunk Technologies, emphasized the company’s intent to be an active participant in the Zcash community. Tyler Winklevoss, co-founder of Gemini, explained Winklevoss Capital’s investment rationale, highlighting privacy as a precondition for freedom and calling Zcash 'encrypted bitcoin, or digital cash.' He predicted that Zcash could capture a meaningful percentage of Bitcoin’s market capitalization, which he forecasts to surge to $1 million per BTC, suggesting Zcash will 'appreciate significantly from here as well.' Zcash has recently experienced significant price action, including a parabolic rally of 1,775% to an all-time high of $750, and after a correction, recovered to $507, marking a 15% increase in the daily timeframe.