Recently, the ZEC privacy coin has been showing some interesting movements—its short-term increase has reached 3.66%, and the underlying logic is worth analyzing.

Institutional funds are clearly increasing their positions. Cypherpunk Technologies recently invested $29 million to buy ZEC, and their current holdings account for 1.8% of the circulating supply. Even more impressively, they plan to continue accumulating up to 5%. Such large-scale actions usually indicate that someone has already seen through the story ahead. Meanwhile, Grayscale's Zcash trust manages $209 million worth of ZEC assets, and they have also applied to US regulators to convert it into a spot ETF—if this succeeds, it could elevate the recognition of the entire privacy coin ecosystem.

Market sentiment is also quite promising. According to on-chain data platforms, about 90% of community sentiment is positive. Among major cryptocurrencies, ZEC's social media buzz and market activity rank among the top, and this kind of enthusiasm often triggers FOMO effects, further pushing up the price.

If you're looking for contract opportunities, a short-term long position could still be considered. The target could be set above $550, but be sure to set proper stop-losses, as market volatility is unpredictable.