Zcash Halving and Its Impact on the Market: Deflationary Features of Blockchain and Speculative Behavior of Investors

The (ZEC) halving, set for November 2025, marks a significant milestone in the cryptocurrency’s four-year cycle of reducing supply. This event will cut block rewards from 3.125 ZEC to 1.5625 ZEC per block, tightening Zcash’s supply and echoing Bitcoin’s deflationary approach, while also introducing unique investor sentiment linked to its privacy features, as highlighted. With climbing 1,172% so far this year and reaching $589 by November 6, 2025, the balance between scarcity and speculation is creating a compelling story for investors.

Deflationary Forces: Scarcity Drives Value

Zcash’s halving slashes the rate at which new coins are created by half, directly boosting the scarcity of its total supply. Past events indicate this mechanism can fuel price growth: following the 2020 halving, ZEC jumped over 500%, and the 2024 halving led to a 92% rise in Q4 2025, according to

. The 2025 halving is likely to intensify these trends, especially as the Grayscale Zcash Trust now manages $137 million in assets, reflecting rising institutional interest, as Bitget reported.

The deflationary effect is further supported by Zcash’s shielded transactions, which now make up 28% of all ZEC in circulation. With 4.5 million ZEC stored in privacy-focused zk-SNARKs pools, demand for the coin is increasingly driven by its privacy utility rather than just speculation, as

noted. This combination of scarcity and practical use provides a strong base for lasting value.

Speculation and Investor Sentiment: FOMO and Bitcoin’s Opposite Trend

The Zcash halving has sparked a surge of speculative interest, fueled by FOMO and ZEC’s negative correlation with Bitcoin. After the 2025 halving, ZEC’s price soared 750%—from below $50 in early September to $400 by October—as traders shifted funds to privacy coins during Bitcoin’s downturns, according to Bitget. This inverse pattern suggests Zcash is emerging as a safe haven for those seeking alternatives to public blockchains amid regulatory pressures, as

reported.

Data from derivatives markets reinforces this: ZEC’s Open Interest (OI) reached a record $1.13 billion in late November 2025, signaling strong bullish sentiment, according to FXStreet. Some analysts believe ZEC could surpass the $500 barrier, with projections as high as $580 or even $750 if shielded transactions continue to grow, as Bitget observed. This speculative

is further boosted by Zcash’s Q4 2025 roadmap, which features ephemeral address support and enhanced Zashi wallet integration, as mentioned.

Risks and Realities: Looking Past the Excitement

Despite the positive outlook from deflationary forces and speculation, risks remain. Zcash’s price swings—such as a 41% weekly jump and a 5.59% rise in 24 hours—highlight the unpredictable nature of crypto markets, as Coinotag pointed out. Furthermore, regulatory ambiguity around privacy coins could hinder adoption if stricter rules are enforced on shielded transactions.

Additionally, while the Electric Coin Company’s roadmap is ambitious, it does not clearly address supply changes after the halving. This uncertainty could cause short-term instability, especially if miners increase selling due to lower rewards, as Coinotag noted.

Conclusion: A Deflationary Bet on Privacy

The 2025 Zcash halving is more than just a technical milestone—it acts as a psychological catalyst for those seeking assets with built-in scarcity and privacy benefits. With growing institutional involvement, rising shielded transactions, and a counter-cyclical relationship to Bitcoin, ZEC appears poised for a strong post-halving rally. Still, investors should remain cautious, as shifts in sentiment or regulation could quickly change the outlook.

As the November 2025 halving nears, Zcash’s progress will reveal how robust its deflationary model and privacy appeal truly are. For now, both data and market psychology suggest the coin is on the verge of a new chapter.