Bitcoin Holds Firm at $690 While Zcash Debuts and Crypto Market Caps $12.5 Billion on October 28, 2016

TL;DR

• Bitcoin held steady near $690 on October 28, 2016, capping a remarkable rally from $430 at the start of the year
• Ethereum traded at $11.09 with a market cap of approximately $947 million, solidifying its position as the second-largest cryptocurrency
• The total cryptocurrency market cap stood at approximately $12.5 billion, with Bitcoin commanding roughly 85% dominance
• Zcash launched on the same day with extreme early pricing, drawing speculative capital and attention away from established coins
• LTC, XRP, and ETC rounded out the top five, reflecting a very different market landscape from today’s

On October 28, 2016, Bitcoin was trading at approximately $689.65, a price point that represented a stunning recovery and growth story for the world’s first cryptocurrency. Just ten months earlier, Bitcoin had started the year around $430. The journey to nearly $690 was driven by a confluence of factors: growing institutional interest, China’s sustained demand, the aftermath of the second halving in July 2016, and an increasingly sophisticated global exchange infrastructure.

But October 28 was not just another day of steady gains. It was the day Zcash launched, and the cryptocurrency market’s attention was split between Bitcoin’s steady ascent and the arrival of the most hyped new coin of 2016.

Bitcoin’s Steady Climb Through October

Bitcoin entered October 2016 with strong momentum. The July 2016 halving, which reduced the block reward from 25 to 12.5 BTC, had initially caused some uncertainty among miners but ultimately reinforced Bitcoin’s scarcity narrative. Through September and October, the price moved steadily upward, supported by increasing trading volume on major exchanges.

By October 28, CoinMarketCap data showed Bitcoin with a market capitalization of approximately $10.99 billion and a 24-hour trading volume of $81.1 million. The 7-day price change showed an impressive 8.93% gain, suggesting that bullish sentiment was firmly in control. The 1-hour and 24-hour changes were modestly positive at 0.11% and 0.41% respectively, indicating that the market was in a consolidation phase rather than a parabolic breakout.

The relative calm in Bitcoin’s price action on this particular day was notable given the frenzy surrounding the Zcash launch. Rather than selling Bitcoin to chase ZEC speculation, most holders appeared content to maintain their positions — a sign of the maturing market where Bitcoin was increasingly viewed as a distinct asset class rather than merely trading capital.

The Altcoin Landscape: A Different Era

The cryptocurrency market of October 28, 2016, was dramatically different from what exists today. Ethereum, the second-largest cryptocurrency by market cap, was trading at just $11.09 with a total market capitalization of approximately $947 million. While ETH had experienced significant growth since its launch in 2015 — including a dramatic run-up and subsequent correction following the DAO hack in June 2016 — it was still firmly in its early stages.

The top five cryptocurrencies by market cap on this date painted a picture of a simpler, smaller market:

• Bitcoin (BTC): $689.65 — Market cap: $11.0 billion
• Ethereum (ETH): $11.09 — Market cap: $947 million
• Ripple (XRP): $0.0081 — Market cap: $289 million
• Litecoin (LTC): $3.97 — Market cap: $191 million
• Ethereum Classic (ETC): $0.94 — Market cap: $80 million

The presence of Ethereum Classic in the top five was a direct result of the DAO hack and the subsequent hard fork that created ETH and ETC as separate chains. The total market capitalization of all cryptocurrencies was approximately $12.5 billion — a fraction of a percent of what it would become in subsequent years.

The Zcash Effect on Bitcoin Markets

The Zcash launch created a temporary but noticeable diversion of speculative capital. On Poloniex, one of the leading altcoin exchanges at the time, ZEC trading volume reached approximately 3,300 BTC on its first day — meaning roughly $2.3 million worth of Bitcoin was exchanged for Zcash in a single day. For a market where Bitcoin’s total 24-hour volume was around $81 million, this represented a meaningful flow of funds.

However, the impact on Bitcoin’s price was muted. The $690 level held steady through the Zcash launch, suggesting that the market had largely priced in the event and that the capital flowing into ZEC was speculative rather than representing a fundamental shift away from Bitcoin. Many traders who purchased ZEC on day one were likely using Bitcoin as their base currency, meaning that the net effect on BTC demand was complex — some selling pressure from ZEC purchases, but also potential buying pressure from those looking to rotate into BTC to participate in the Zcash market.

China’s Continued Influence

In October 2016, Chinese exchanges still played a dominant role in Bitcoin trading. OKCoin, Huobi, and BTCC were among the highest-volume exchanges globally, and Chinese yuan (CNY) trading pairs often accounted for over 90% of global Bitcoin volume. This dominance would begin to wane in early 2017 as Chinese regulators imposed stricter controls, but in late October 2016, China was still the epicenter of Bitcoin trading activity.

The Chinese market’s appetite for Bitcoin was driven by several factors: capital controls that made Bitcoin an attractive vehicle for moving money abroad, a growing domestic interest in cryptocurrency speculation, and a sophisticated mining industry that provided a steady supply of newly minted coins to domestic exchanges.

Mining Economics at $690

With Bitcoin at $690 and the post-halving block reward at 12.5 BTC, miners were earning approximately $8,625 per block — or roughly $1.24 million per day in aggregate block rewards. This was a significant reduction from the pre-halving era when 25 BTC blocks at similar prices would have yielded over $17,000 per block, but it was still highly profitable for efficient mining operations.

The network’s total hashrate was approaching 2 exahashes per second, with the difficulty adjustment mechanism ensuring that the average block time remained close to the ten-minute target. The competitive dynamics of mining were shifting toward larger, more professional operations, particularly in China where cheap electricity and access to the latest ASIC hardware provided significant advantages.

Why This Matters

October 28, 2016, captures a snapshot of the cryptocurrency market at a pivotal inflection point. Bitcoin at $690 represented a 60% gain year-to-date, yet it was still a year away from its dramatic run to nearly $20,000. The total market cap of all cryptocurrencies at $12.5 billion would have seemed enormous to early adopters but was a rounding error in global financial markets.

The launch of Zcash on this same day symbolized the broader theme of cryptocurrency innovation and speculation that defined 2016. Zero-knowledge proofs, which powered Zcash’s privacy features, would eventually become fundamental building blocks for Ethereum’s scalability solutions through zk-rollups — proving that the technology first showcased on October 28, 2016, had lasting significance far beyond one coin’s price.

For market historians, the October 28 snapshot is also a reminder of how dramatically the landscape would change. Within 14 months, Bitcoin would surge past $19,000, the total crypto market cap would exceed $800 billion, and the coins that occupied the top five on this day would be joined by thousands of new entrants in an ecosystem that barely resembled the one that existed when Zcash made its debut.

Disclaimer: This article is for informational and historical purposes only and does not constitute financial advice. Cryptocurrency markets are highly volatile, and past performance is not indicative of future results. Always conduct your own research before making any investment decisions.