Zcash surged 23% over the past 24 hours, leading gains across major cryptocurrencies as markets absorbed the Federal Reserve’s first rate increase since 2023. Bitcoin remained above $76,000 after the Fed indicated that only limited additional tightening may be needed.

ZEC was trading around $1,369, while Bitcoin gained less than 1% to approximately $76,258. Solana climbed nearly 3% to just below $100. BNB and HYPE, the native token of Hyperliquid, advanced more than 2% each, while Ether, XRP and Dogecoin posted gains between 1% and 2%.

Zcash’s rally followed comments from Matt Huang, co-founder of crypto investment firm Paradigm. Huang said on X that Zcash can serve as a privacy-focused counterpart to Bitcoin and disclosed that Paradigm holds ZEC.

The Zcash network allows users to transfer funds without publicly revealing the identities of the parties involved or the amount being transferred. Its holders recently approved proposals intended to improve transaction speeds while preserving scheduled reductions in new coin issuance, similar to Bitcoin’s halving mechanism.

Huang described Zcash as “a private complement to Bitcoin” and backed continued funding for its developers. However, he also argued that network governance should combine token-holder voting with other methods of making decisions about protocol changes.

The broader crypto market recovery followed the Fed’s decision to raise its benchmark interest rate by 25 basis points, bringing the target range to 3.75%–4%.

Higher interest rates increase borrowing costs and can reduce the funds available for riskier investments. They can also make interest-bearing cash and government securities more attractive compared with Bitcoin, which does not generate income simply through ownership.

Still, cryptocurrencies can advance after an expected rate increase if investors conclude that the Fed is approaching the end of its tightening cycle. The Fed’s median projection places the policy rate at 4.1% at the end of both 2026 and 2027, pointing to one additional quarter-point hike this year.

Jeff Ko, chief analyst at ViaBTC, said the latest increase had largely been anticipated by markets. He said the Fed appears to be signaling that it does not currently expect an aggressive tightening campaign, while investors seem encouraged by the central bank’s efforts to bring inflation under control.

Broader markets also moved higher. S&P 500 futures rose 0.6%, Nasdaq 100 futures gained 0.7% and Asian equities advanced 0.3%. The two-year Treasury yield fell two basis points to 4.71% after reaching its highest level since 2024 in the previous session.