Raoul Pal suggests that capital rotation may be driving the surge in Zcash.

Market Dynamics: Raoul Pal suggests that the recent surge in Zcash's price may be due to capital rotation rather than a sustained bull trend, emphasizing the need for a broader market uptrend to confirm its rally.

Price Fluctuations: Zcash has experienced a significant increase of 699.07% since the beginning of the year, but its price has declined by approximately 37% over the past month, indicating slowed momentum.

Institutional Interest: There has been a rise in institutional interest in Zcash, highlighted by Grayscale's recent filing to convert its Zcash fund into a spot ETF, following a notable price surge after predictions from crypto entrepreneur Arthur Hayes.

Future Outlook: Pal advises caution in purchasing Zcash at current levels, suggesting that it needs to establish a strong base price before considering further investment.