September 8, 2026
As Bitcoin has matured, its volatility has declined. Early in its history, Bitcoin’s price had a realized annualized volatility of about 125%.1 Over the last year, its price volatility has averaged only about 40%—comparable to the so-called “magnificent 7” large cap tech stocks.2
In contrast, Zcash has a much lower market cap (just 1% of Bitcoin’s) and a higher price volatility.3 Over the last year, Zcash (ZEC) price volatility has averaged about 140% (Exhibit 1).
For high-volatility assets, options are an especially useful tool for risk management and for pursuing alternative income. For example, at current volatility, the premium income from a hypothetical Zcash covered call strategy would equate to an implied yield of 70%.4 In contrast, Bitcoin covered call strategies currently offer an annualized yield of about 30%.
The higher potential yield comes with higher risk, and covered call strategies experience capital losses if spot prices decline by an amount greater than the premium received. Investors seeking defined outcomes can consider long call and put option structures.
Key Takeaway: Zcash has a lower market cap and higher price volatility than Bitcoin, making options a compelling tool for risk management and potentially an attractive path for investors seeking premium income.
Exhibit 1: Zcash is 3-4x more volatile than Bitcoin
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