Privacy coin Zcash (ZEC) is flashing a classic bullish reversal pattern that could push its price above $1,000 in the coming weeks.

Key takeaways:

• ZEC’s cup-and-handle setup points to a potential rally toward $1,091 by June or July.
• Privacy coins are leading the market, with ZEC up 73% over the past month versus crypto’s 0.2% gain.

Privacy narrative may trigger 55% ZEC price upside

The ZEC/USD pair appears to have formed a cup-and-handle (C&H) pattern, marked by a rounded recovery phase followed by a downward-sloping consolidation.

Traders typically read the structure as bullish once the price breaks above the neckline, as it suggests buyers have absorbed the previous supply wall and regained control.

The pattern’s upside target is calculated by measuring the distance between the cup’s lowest point and the neckline, then adding that height to the breakout level.

ZEC/USD three-day price chart. Source: TradingView

As of Tuesday, ZEC had entered the pattern’s “handle” stage while eyeing a breakout above the neckline resistance at around the $625–$650 area.

Zcash’s decisive close above the neckline may send its price toward $1,091 by June or July, up about 88% from current prices, if the C&H structure plays out as intended.

This upside target aligns with ZEC’s 1.618 Fibonacci extension, drawn from the $745 swing high to the $185 swing low.

ZEC is outperforming the crypto market in May

ZEC has gained 18% over the past three days, even as the wider market has fallen 3.45% over the same period, prompting some traders to argue that Zcash is effectively “running its own bull market.”

Source: X

Broadly, privacy coins have outperformed the wider crypto market over the past month. ZEC led the move, gaining more than 73%, while other privacy-focused tokens such as Monero (XMR) and Dash (DASH) also rallied in tandem.

By comparison, the total crypto market capitalization rose just 0.2% over the same period, suggesting the move is more sector-specific than market-wide.

ZEC/USD versus XMR/USD, DASH/USD, and the TOTAL crypto market cap one-month performance. Source: TradingView

Heightened demand for anonymity and financial privacy is driving much of Zcash’s renewed appeal, turning the once-forgotten privacy coin into one of crypto’s strongest narratives.

Related: Zcash gains 70% in a week amid growing interest in crypto privacy

The bullish case gained further traction last week after BitMEX co-founder Arthur Hayes said ZEC’s market capitalization could one day reach 10% of Bitcoin’s (BTC).

That would imply a price of $9,225 per coin based on ZEC’s current circulating supply of about 16.68 million tokens.

ZEC’s value in BTC terms has grown roughly 20.50% since Hayes’s comment.

ZEC/BTC daily chart. Source: TradingView

Earlier in May, sentiment also improved after Multicoin Capital disclosed Zcash exposure and Robinhood listed the token, adding fresh institutional and retail-access catalysts to ZEC’s rally.

TLDR

• Bitcoin price dropped sharply this week and briefly touched $76,000 during increased selling pressure.
• Bitcoin whale wallets holding at least 100 BTC increased to 20,229 over the past year.
• Large Bitcoin holders continued accumulation despite market volatility and shifting investor sentiment.
• Data showed that these whale wallets now hold Bitcoin worth at least $7.7 million each.
• Retail traders showed fear and reacted with increased selling as bearish sentiment rose.

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Bitcoin recorded a sharp weekly decline and briefly touched $76,000, while large holders increased accumulation. Data showed rising whale wallet numbers despite growing market stress and negative sentiment. Analysts reported continued institutional activity as retail traders reacted with caution and selling pressure.

Bitcoin Whales Expand Holdings During Price Weakness

Bitcoin experienced a fast pullback this week, and prices briefly fell toward $76,000 during heavy selling. However, large holders continued accumulation, which reflects sustained activity from institutions and high-net-worth investors.

Santiment reported that wallets holding at least 100 BTC increased to 20,229 over the past year. The firm stated, “This marks an 11.2% rise from 18,191 wallets recorded last year.”

These wallets hold roughly $7.7 million or more in Bitcoin, which links them to major investors. The data showed that accumulation continued even during periods of volatility and shifting sentiment.

Santiment added that whale growth persisted despite retail hesitation and frustration across social channels. The firm noted that large holders often act independently of short-term market sentiment.

Historically, rising whale wallet numbers suggest confidence in Bitcoin’s long-term supply dynamics and market role. This trend continued even as prices faced downward pressure.

Market Stress Rises as Selling Pressure Builds

CryptoQuant data showed that the SOAB ratio moved above normal levels during the recent downturn. This shift indicated capitulation from older Bitcoin holders who began selling under pressure.

At the same time, short-term investors showed panic-selling behavior as prices declined quickly. This reaction contributed to increased volatility across the market.

Santiment reported a surge in bearish sentiment across social media platforms in recent days. The firm stated that bearish comments exceeded bullish ones for the first time since April 21.

Retail traders reacted strongly to price weakness and expected further declines in the near term. This shift highlighted growing fear among smaller market participants.

Analysts suggested that a rapid V-shaped recovery remains unlikely under current conditions. Market data reflected ongoing stress across both long-term and short-term holders.

Regulatory Progress Enters Focus as Next Catalyst

Nexo analyst Dessislava Ianeva pointed to regulatory developments as a potential driver of future price movement. She stated that the CLARITY Act could influence Bitcoin’s trajectory.

The bill recently advanced through the Senate Banking Committee, which raised expectations for regulatory clarity. Ianeva said, “This progress may act as a catalyst for the next rally.”

Bitcoin briefly rose above $82,000 following the committee approval and market reaction. At the same time, prediction markets increased the probability of the bill becoming law in 2026.

Ianeva compared the development to the earlier GENIUS Act rally, which also triggered price movement. She added that a Senate floor vote could support further upside momentum.

Recent price movements and legislative progress continue to shape market direction and investor positioning. Data shows that whale accumulation remains active during ongoing volatility.

Asset manager Yorkville America has requested to withdraw multiple crypto exchange-traded funds applications filed on behalf of the Donald Trump-backed Truth Social after changing its product strategy.

Yorkville America said Tuesday that it is moving away from offerings registered under the Securities Act of 1933, such as the proposed Truth Social Bitcoin ETF, to structures under the Investment Company Act of 1940, saying the shift would enable it to offer more innovative products while benefiting from stronger investor protections and tax efficiencies. 

Yorkville America’s Truth Social Bitcoin & Ethereum ETF and Truth Social Crypto Blue Chip ETF were also withdrawn. The asset management firm said it “initiated this process after determining the ’40 Act framework provides a structure for delivering the differentiated, rules-based investment strategies the firm continues to develop for its growing investor base.”

Yorkville America’s request to withdraw its Truth Social Bitcoin ETF. Source: SEC

The firm, known for “America First”-themed investment products, gave no indication it would pursue a crypto ETF under the ‘40 Act framework. Yorkville is the financier and asset manager for Trump Media & Technology Group (TMTG), which is behind Truth Social.

The withdrawals come amid ongoing concerns that Trump’s ties to the crypto industry, and the financial interests stemming from them, are conflicting with his duties as the US president.

Democratic senators have been pressing for answers ever since Trump was inaugurated in January 2025, particularly regarding his role with the World Liberty Financial crypto platform.

Crypto ETFs have struggled this year

It also comes as demand for crypto ETFs has cooled in 2026 amid a broader crypto market pullback. 

Net inflows into US spot Bitcoin (BTC) ETFs in 2026 currently sit at $790 million as of Tuesday, mostly concentrated in the BlackRock-issued iShares Bitcoin Trust ETF (IBIT) and are only a fraction of the $25 billion that inflowed in 2025. 

Spot Ether (ETH) ETFs have also struggled to maintain investor interest, recording $640 million in net outflows, while new altcoin ETFs have not captured the same demand at launch as their predecessors. 

Related: Trump-linked American Bitcoin energizes 11,298 new ASICs 

However, Bloomberg ETF analyst James Seyffart suspected Yorkville America’s decision to pull out of the crypto ETF market may have been due to the competitive landscape for Bitcoin ETFs, particularly with the new Morgan Stanley Bitcoin Trust ETF carrying a market-low fee of 0.14%.

The crypto ETFs were intended to be part of TMTG’s broader crypto strategy, which included the launch of the Truth.fi financial platform last year.

Yorkville America’s product offerings range from American-themed funds spanning defense, security and energy, as well as tech and real estate.

Products issued under the ’40 Act are typically mutual funds and ETFs designed for diversified, regulated investment strategies, while ’33 Act structures are commonly associated with spot commodity and crypto-style ETF products. 

Magazine: ETH stalls at $2.4K five times, SOL to rally to $120: Market Moves 

The Financial Intelligence Unit (FIU) of Estonia has partially suspended the operating license of BB Trade Estonia OÜ, the entity behind the Zondacrypto cryptocurrency platform. In its formal statement, the FIU said the company is now barred from accepting deposits and onboarding new clients, while existing users may still withdraw funds. The move signals intensified regulatory scrutiny of Zondacrypto across Europe as authorities scrutinize compliance practices and consumer protections within the crypto exchanges that have migrated or registered in the Baltic state.

The regulator’s notice also sets a 30-day window for BB Trade Estonia OÜ to bring its operations into alignment with applicable legal requirements. “If it fails to do so, the law obliges the FIU to revoke the operating license,” the FIU stated. The authority did not disclose the specific compliance breaches that prompted the suspension, and Cointelegraph contacted the FIU for comment but did not receive a response at the time of publication.

Key takeaways

• The Estonian FIU partially suspends BB Trade Estonia OÜ’s operating license, barring deposits and new onboarding while allowing withdrawals for existing users.
• A 30-day window is imposed to reach full compliance, with potential license revocation if requirements are not satisfied.
• The regulator did not specify the breaches; authorities and media outlets will be watching for concrete remediation steps and enforcement actions.
• The development compounds existing regulatory scrutiny of Zondacrypto in Europe, including MiCA-related concerns raised by Estonian authorities earlier in 2024.
• BB Trade Estonia OÜ has ties to Zondacrypto’s broader cross-border presence, with the company registered in Estonia since 2019, according to InfoRegister data.

Regulatory action in Estonia and implications for BB Trade Estonia OÜ

Estonia’s FIU has invoked supervisory powers to curb certain activities by BB Trade Estonia OÜ as part of a broader effort to tighten oversight over crypto service providers within the EU’s MiCA framework. By blocking new deposits and client onboarding, the regulator aims to curb potential consumer risk while evaluating whether the firm meets ongoing licensing requirements. The 30-day compliance deadline places the onus on the operator to demonstrate robust AML/KYC controls, proper governance, and other regulatory obligations demanded under Estonian law and EU standards.

Officials did not detail the underlying deficiencies in public statements, and the absence of a publicly disclosed breach list creates uncertainty for stakeholders. The move comes amid a wider debate about how EU crypto licensing is implemented in member states and how cross-border entities adapt to MiCA’s harmonized standards. Estonia’s authorities have emphasized a path toward formal compliance rather than immediate sanctions, but the possibility of license revocation remains a material risk for BB Trade Estonia OÜ and its Zondacrypto platform.

BB Trade Estonia OÜ’s status is also notable in light of its corporate history. The Estonia-based entity has been listed as the operating arm of Zondacrypto, a platform with roots in Poland as BitBay, established in 2014. Its registration in Estonia since September 2019—well before the full rollout of MiCA—positions the business squarely within EU regulatory reach, as authorities seek consistent supervision across borders.

Zondacrypto at the center of regulatory debate in Europe

The partial suspension in Estonia adds to a broader web of regulatory considerations surrounding Zondacrypto in Europe. Reports surrounding withdrawal difficulties at Zondacrypto have drawn scrutiny from policymakers and regulators, including public commentary by Polish officials referencing potential losses and the scale of exposure in crypto-related incidents. In parallel, Zondacrypto has faced MiCA-related warnings from Estonia’s Financial Supervision and Resolution Authority (FSA) over the listing of the exchange’s “TeamPL” token without a white paper, which the authorities flagged as a MiCA compliance issue.

Market activity around Zondacrypto has appeared subdued in recent data, with CoinGecko noting limited trading activity on the exchange around the time of the regulatory action. Media coverage and regulatory filings continue to shape the narrative around the exchange’s operational viability and governance.

As part of the wider regulatory discourse, Zondacrypto’s governance and its cross-border footprint have become points of focus for enforcement and policy analysis. The Polish dimension—where discussions of potential links to Russian capital and political influence have surfaced—highlights how national risk perceptions can intersect with EU-wide licensing and oversight. In parallel, Estonia has taken steps to operationalize MiCA within its financial sector, as evidenced by other notable regulatory actions like the licensing of LHV Pank under the EU crypto framework. Estonia’s FSA granted LHV Pank a MiCA license, marking a milestone for one of the country’s largest banks and signaling the incremental integration of traditional financial institutions into the EU’s crypto regulatory regime.

BB Trade Estonia OÜ’s MiCA-related challenges and the ongoing Zondacrypto narrative illustrate how cross-border entities navigate diverse regulatory expectations. The Estonian and Polish regimes reflect a broader European push toward standardized oversight to bolster consumer protections, licensing discipline, and AML/KYC compliance in the crypto ecosystem. Regulators are balancing market access with risk mitigation, a dynamic that will shape licensing decisions, enforcement priorities, and the pace of institutional participation in European crypto markets.

Cross-border licensing and institutional implications

The Estonian regulatory action arrives amid a wider transition in the EU where MiCA is increasingly interpreted and implemented by member states. The 30-day compliance window underscores the immediacy with which regulators seek to impose corrective measures on crypto service providers, emphasizing governance reforms, disclosures, and risk management practices aligned with EU standards. For crypto exchanges, the message is clear: licensing continuity hinges on demonstrable compliance with cross-border rules, consumer protections, and anti-money laundering controls that align with MiCA’s framework.

From an institutional perspective, the development adds to the cost and complexity of maintaining cross-border crypto operations. For banks and payment providers operating within or adjacent to the crypto space, the Estonian example reinforces the importance of robust onboarding controls, transparent token disclosures, and clear operational compliance to preserve access to regulated financial rails. The licensing milestone achieved by LHV Pank in Estonia—under MiCA—illustrates that traditional financial institutions can gain regulatory clearance to participate in crypto services, provided they meet the necessary standards. Such developments may influence other banks and financial firms to pursue MiCA-compliant licensing as a prerequisite for borderless crypto activities.

Finally, the case highlights the practical uncertainties that still surround enforcement scope and interpretation of MiCA in various jurisdictions. While the FIU has outlined a path to remediation, it has not publicly enumerated the exact breaches. This ambiguity can complicate remediation planning for firms facing similar regulatory actions and underscores the need for clarity in how authorities assess and certify ongoing compliance in a rapidly evolving policy environment.

In summary, the Estonian FIU’s partial license suspension of BB Trade Estonia OÜ, paired with ongoing MiCA-related concerns and cross-border regulatory developments, reinforces the imperative for crypto firms to maintain rigorous compliance programs, transparent governance, and resilient operational controls as they navigate Europe’s unified but heterogeneous regulatory landscape.

Closing perspective: While the immediate impact centers on BB Trade Estonia OÜ and Zondacrypto, the action reflects broader regulatory intent to standardize oversight and heighten enforcement in the European crypto ecosystem. The next steps—whether BB Trade Estonia OÜ rectifies gaps or faces revocation—will shape future licensing discourse and the regulatory calculus for cross-border crypto activity in the region.

Polymarket has launched a new category of prediction markets tied to private companies, allowing users to trade on questions related to pre-IPO companies — a move that could bring greater price discovery to private markets, where valuation data is often limited and opaque.

The new offering, announced Tuesday, was developed in partnership with Nasdaq Private Market, a platform that facilitates secondary trading in shares of privately held companies. Nasdaq Private Market will provide the underlying data and market infrastructure for the contracts.

The markets are designed to reflect expectations around events such as fundraising rounds, valuation changes and other corporate milestones involving startups and late-stage private companies. The launch expands Polymarket’s product lineup beyond its core markets focused on politics, macroeconomic events and public companies.

Source: Cointelegraph

The move is part of Polymarket’s effort to broaden its appeal to financially oriented users and extend prediction markets into private capital markets, where pricing information is often less accessible and less transparent than in public equities.

Polymarket said the rise of so-called unicorns — privately held startups valued at $1 billion or more — has increased demand for market-based forecasting tools tied to private companies. The platform noted that there are nearly 1,600 unicorns worldwide with a combined valuation exceeding $5 trillion, despite access to these companies remaining largely limited to private investors.

Related: Jump Trading eyes Kalshi, Polymarket stakes as institutional interest grows: Report

Prediction markets draw growing institutional interest

Polymarket’s partnership with Nasdaq Private Market reflects the broader institutionalization of prediction markets, as private company data and event-based contracts gain traction among professional investors.

Retail traders still account for the vast majority of activity. An April report by Bitget Wallet and Polymarket found that retail traders generated 80% of prediction market volume.

Prediction market trading volume in March. Source: Bitget Wallet

Still, Wall Street analysts say institutional participation is increasing as the US regulatory environment becomes more supportive and market infrastructure improves.

Bernstein recently pointed to the first institutional block trade on Kalshi as a milestone for the sector. Block trades are privately negotiated transactions, typically executed by large investors to move significant positions without disrupting the broader market.

Related: SEC delays prediction market ETFs over mechanics and risk concerns: Report

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

TLDR

• Flare has integrated D’CENT hardware wallets with its XRP yield vault infrastructure.
• The integration allows users to earn XRP yield while maintaining self-custody.
• Users can access yield products without creating new wallets or managing new chains.
• Flare uses FAssets to convert XRP into FXRP for deployment in DeFi strategies.
• Smart Accounts simplify transactions by removing gas fee and chain switching complexity.

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Flare has connected its yield infrastructure to D’CENT hardware wallets for XRP holders. The update allows users to earn yield while keeping assets in self-custody. The network also introduced the XRP Alliance to unify services for XRP management and earning.

Flare Enables Direct XRP Yield Access Through Hardware Wallets

Flare has integrated its yield system with D’CENT’s biometric hardware wallet platform. As a result, users can access XRP yield vaults without leaving their secure device. The setup removes the need for new wallets or additional blockchain navigation.

The integration allows users to deposit XRP and earn returns directly in XRP. Flare uses its FAssets system to convert XRP into FXRP for DeFi use. At the same time, Smart Accounts simplify gas management and transaction processes.

Flare stated that Smart Accounts reduce friction for new users entering DeFi. The system hides complex steps like gas fees and chain switching. This design supports smoother onboarding for first-time participants.

XRP Alliance Expands Ecosystem Access and Vault Adoption

Flare launched the XRP Alliance alongside the wallet integration. The group connects projects across the XRP Ledger ecosystem. It aims to provide a single interface for managing, swapping, and earning XRP.

The alliance supports users who prefer hardware wallets for security. It brings together services that operate within the XRPL ecosystem. This approach reduces the need for multiple platforms or accounts.

The earnXRP vault serves as the primary product in this rollout. It was developed through a partnership between Flare, Upshift, and Clearstar. The vault reached its 25 million XRP cap within one week.

Flare reported that more than 5,400 users joined the earnXRP vault. Around 98% of these users were new to DeFi platforms. This data highlights early user engagement with the product.

The vault currently offers about 3.4% APY in XRP. Users receive returns without converting their assets into other tokens. Early participants also benefited from waived fees during the first 30 days.

Flare confirmed that users maintain control of their assets during the process. However, the system still relies on smart contracts and DeFi strategies. These elements introduce operational risks tied to the underlying infrastructure.

FAssets convert XRP into FXRP, which interacts with DeFi protocols. This process depends on smart contract execution within the Flare network. Any technical failure could affect asset performance or accessibility.

Flare emphasized that self-custody remains a core feature of the system. Users do not transfer ownership to centralized platforms. Instead, they interact with decentralized infrastructure through their hardware wallet.

The XRP Alliance will continue expanding integrations with XRPL projects. Flare plans to add more tools for asset management and yield strategies. The network has not announced a timeline for future updates.