Recently, privacy coins Zcash (ZEC) and Monero (XMR) have outperformed bigger cryptocurrencies. The unexpected increase in the price of these cryptocurrencies seems to be a reaction to recent events in the Russia-Ukraine war, as well as the signing of an executive order by the US Joe Biden administration.

At the time of writing, Zcash (ZEC) is trading at $142, with an 11.7 percent profit, while Monero (XMR) is trading at $195, with a 15.5 percent profit. These cryptocurrencies have been following the broader trend in the crypto market, which has shifted to a more optimistic position as Bitcoin surpasses $41,000.

The Reactions of Zcash and Monero to a FED Coin

As previously stated, US President Joe Biden issued an executive order that has surprised many due to its favourable attitude toward cryptocurrencies and digital assets. As the conflict between Russia and Ukraine escalates, the International Community has put financial penalties on Putin, the Russian aristocracy, and the Russian banking system.

According to Coin Center’s Executive Director Jerry Brito, conventional media has pushed a negative narrative about cryptocurrencies. They are classified as “hazardous,” having the potential to enable Russia to avoid sanctions. Fortunately, some government leaders in the United States have considered the other side of the coin.

As Brito said, the essential message of this presidential order is the US Federal Government’s serious recognition of cryptocurrencies as genuine assets. The crypto market seems to have become used to negative or non-existent signals from the United States, which is why this news might have resulted in a relief surge.

In addition to the overall increase in cryptocurrencies, privacy coins such as Zcash and Monero seem to have profited from the narrative change. The presidential order also considers the establishment of a U.S. Central Bank Digital Currency (CBDC).

This asset has been seen as the inverse of Bitcoin, Zcash, and Monero. Rather than giving people authority over their money, they seem to provide governments complete control and supervision over the national currency. As a result, some investors may have opted to boost their holdings in ZEC and XMR.

Is Privacy About to Become More Relevant?

Other privacy currencies have witnessed a similar spike, with Dash (DASH) up 12.8 percent in the last day. During the same time period, Oasis Network (ROSE), Secret (SCRT), Horizen (ZEN), and Keep Network (KEEP) all averaged a comparable profit.

Retail investors have been driving ZEC and XMR rallies in low timeframes, according to data from Material Indicators. Investors who placed bids of roughly $100 infused over $1 billion in liquidity into the ZEC/USDT trading pair.