Eli Ben-Sasson, the co-founder of Zcash, has voiced his support for Shielded Bitcoin—an initiative designed to introduce private transactions directly to the Bitcoin base layer. Furthermore, he maintains that Zcash (ZEC) remains on schedule to achieve his ambitious $5,000 year-end price forecast.
Having also co-founded StarkWare, Ben-Sasson was a co-author of the foundational Zerocash whitepaper that paved the way for Zcash. According to him, the initial objective of that research was to integrate privacy features directly into Bitcoin.
Shielded Bitcoin Brings Zcash-Style Privacy to Layer 1
The proposal was released on September 24 by research firm Alloc Init, penned by authors Misha Komarov, Aleksei Moskvin, and Clara Shikhelma.
The whitepaper explains that the architecture integrates encrypted notes alongside public nullifiers and zero-knowledge (ZK) proofs. These nullifiers prevent hidden coins from getting spent twice. The system operates without requiring any soft fork, BitVM, or consensus modifications. Instead, it leverages Bitcoin PIPEs, which utilize witness encryption. Consequently, the team notes that all protocol data remains directly on the Bitcoin network.
This capability is significant because conventional Bitcoin transactions remain transparent on-chain, potentially exposing confidential business payment information to external parties.
While Ben-Sasson acknowledged he has not yet read the whitepaper, he praised the overall trajectory and expressed a desire to see ZK privacy and scaling successfully deployed on Bitcoin’s Layer 1.
Ben-Sasson Predicts $5,000 ZEC After Earlier Call Held
Back on September 9, Ben-Sasson forecasted that ZEC would surpass $1,200 by September 25, a prediction that successfully materialized. ZEC is currently valued at $1,545.89, marking a 1.44% increase over 24 hours and a surge of nearly 291% across a 90-day span. The token currently holds the ninth position by market capitalization.
A climb to $5,000 would necessitate an additional increase of roughly 223%. Meanwhile, Ben-Sasson notes that an increasing number of large holders are inquiring about the forces driving the price surge. He admits he lacks a definitive explanation and has instead asked his followers for their insights.
Nonetheless, multiple catalysts emerged throughout September. Zcash spot products attracted $98.2 million over a single week ending September 18, representing the highest inflows among 14 distinct cryptocurrency products. Additionally, Ledger integrated private Zcash balances into its desktop application. Simultaneously, the upward price movement severely impacted traders betting against ZEC, resulting in a single short position liquidation totaling a $10.68 million loss.
Ben-Sasson emphasizes that his target serves as a personal wager rather than formal financial advice. Whether ETF inflows remain robust through December may ultimately determine if ZEC approaches that milestone.
Frequently Asked Questions
What is Shielded Bitcoin?
Shielded Bitcoin is a proposal created by research firm Alloc Init that aims to add privacy features like encrypted notes and zero-knowledge proofs to Bitcoin’s base layer without requiring soft forks or consensus changes.
What is Eli Ben-Sasson’s year-end price target for Zcash (ZEC)?
Ben-Sasson maintains a price target of $5,000 for ZEC by the end of the year.
What catalysts have driven the recent Zcash rally?
Key drivers include $98.2 million in spot fund inflows over a single week, Ledger adding support for private Zcash balances, and significant short liquidations.
