Bitcoin Rises Amid Optimism

Investing.com– Bitcoin rose on Thursday, staying near recent peaks as sentiment towards cryptocurrency markets improved with expectations of friendlier regulations under Donald Trump.

Dogecoin Gains Momentum

Among meme tokens, Dogecoin extended its gains, hovering near three-year highs reached earlier this week. Social media buzz around Doge increased after Trump announced the formation of the Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy.

Bitcoin rose 3.8% to $89,885.4 by 00:30 ET (05:30 GMT). It reached a record high of $93,226.6 on Wednesday before a swift decline.

Broader Crypto Market Response

The rise in cryptocurrency prices persisted despite the U.S. dollar rallying to one-year highs, following signs of persistent consumer inflation in October.

Trump Trade Influences Bitcoin

The world’s largest cryptocurrency gained momentum from optimism regarding Trump’s victory in the upcoming 2024 presidential race. He has promised to establish crypto-friendly regulations and proposed a national Bitcoin reserve, enticing traders to invest in Bitcoin as a credible asset.

However, the exact implications of Trump’s policies for crypto remain uncertain as he selects members for his cabinet, with Trump expected to begin his term in early 2025. Uncertainty in broader financial markets continues over the outlook for interest rates, which may be influenced by Trump’s anticipated expansionary policies.

Dogecoin Gains After DOGE Formation

Meme token Dogecoin surged 9.1% to $0.394493 on Thursday, continuing its rise and approaching strong levels last seen in May 2021. Speculation arose about whether Trump’s DOGE reference relates to the meme token and if it would receive official recognition.

However, analysts believe the DOGE agency, aimed at enhancing government efficiency and reducing spending, would lack the authority to enact significant changes. GLJ Research described it as “a toothless committee formed to make a few billionaires feel important.”

Altcoins Continue Positive Trend

Most major altcoins mirrored Bitcoin’s gains, although they traded below earlier peaks.
– Ether: Rose 2.5% to $3,216.79
– SOL, XRP, MATIC: Increased between 2% and 9%.

The crypto markets remained mostly unfazed by the sticky U.S. consumer inflation data from October, which raised questions about the long-term interest rate outlook.

Later on Thursday, Federal Reserve Chair Jerome Powell is expected to address these concerns.