Privacy-focused cryptocurrencies surged over the weekend, with the segment's market capitalization climbing 8% to $36.2 billion as of Sunday, November 16, 2025. This rally was fueled by intensifying political tension in the United States, centered on a congressional vote scheduled within 48 hours that could force the release of sealed files linked to the Epstein case. Prediction markets on Kalshi indicated a 93% probability of the House passing the bill, generating over $1 million in trading volume by Sunday noon GMT.
Among the top performers, Zcash (ZEC) gained 7.5%, while Dash (DASH) and Firo (FIRO) rose 13% and 22%, respectively. Monero (XMR) also saw significant movement, hitting a high of $440 in the last 24 hours, though it settled at $433. The gains were partly driven by traders using privacy coins as a hedge against political instability, with Rep. James Walkinshaw of the House oversight committee emphasizing the risks of delaying file disclosures.
Institutional interest provided additional momentum. Grayscale's Zcash Trust (ZCSH) reported over $228 million in assets under management as of November 14, and the Winklevoss twins announced plans to acquire approximately 5% of ZEC's total supply, boosting demand. Other factors contributing to the surge include a major data breach in September and privacy coins' isolation from macro-economic tensions like tariff wars.
However, technical indicators suggest potential headwinds. Both ZEC and XMR are forming double top patterns, and whales sold $22 million worth of ZEC on exchanges like OKX and Binance, while executing nearly $200 million in net short positions. Regulatory risks remain a concern, with past delistings of privacy coins highlighting ongoing vulnerabilities.
