Core Viewpoint - Arthur Hayes believes that privacy will be a defining theme in the cryptocurrency market, with Zcash positioned as a key asset in response to increasing state surveillance and sanctions enforcement [1][2]. Group 1: Privacy as an Investment Theme - Hayes has established a significant position in Zcash through his family office, Maelstrom, viewing privacy as an undervalued asset in the current market landscape [1]. - He predicts that Zcash will serve as the "privacy beta," indicating a strong belief in its potential growth and value [2]. Group 2: Macro Economic Context - The broader economic thesis links U.S. political incentives to aggressive credit expansion, with energy prices acting as a limiting factor for policymakers [3]. - Hayes argues that sustained deficits and pressure to maintain economic activity will lead to increased demand for privacy-focused assets like Zcash [4]. Group 3: Political and Economic Dynamics - The U.S. political landscape, including recent actions in Venezuela, is seen as influencing energy prices and, consequently, the cryptocurrency market [4][5]. - Hayes suggests that political efforts to manage energy prices will allow for continued credit expansion, which will positively impact Bitcoin and other cryptocurrencies [5].

Bitcoin extended its rally into October, breaking above $117,000 for the first time since mid-September as fresh U.S. labor market data boosted expectations of Federal Reserve rate cuts. The world’s largest cryptocurrency jumped more than 4% on the day, decisively shattering the $115,000 resistance zone. The move came after the Automatic Data Processing (ADP), a U.S.-based payroll and HR management company, reported a surprise loss of 32,000 private payrolls in September, versus expectations for a gain of ...