Bitcoin and Dogecoin Rise, Buoyed by Expectations of Friendlier Regulations Under Donald Trump

Among meme tokens, Dogecoin extended gains and remained in sight of three-year peaks hit earlier this week. Social media buzz around Doge also rose after Trump

Bitcoin price rose on Thursday, remaining in sight of recent peaks as expectations of friendlier crypto regulation under Donald Trump continued to prop up sentiment towards digital asset markets.

Among meme tokens, Dogecoin extended gains and remained close to three-year peaks hit earlier this week. Buzz around Doge also rose after Trump announced the formation of the Department of Government Efficiency (DOGE), to be led by Elon Musk and Vivek Ramaswamy.

Bitcoin rose 3.8% to $89,885.4 by 00:30 ET (05:30 GMT). The token hit a record high of $93,226.6 on Wednesday, but swiftly fell from the level.

Broader crypto prices also rose, and were largely undeterred by a rally in the dollar to one-year highs, after U.S. consumer inflation showed signs of stickiness in October.

Trump trade underpins Bitcoin

The world’s largest cryptocurrency remained underpinned by optimism over Trump’s victory in the 2024 presidential race, given that he had vowed to roll out pro-crypto regulations.

Trump had promised to make America the crypto capital of the world, and had also floated the idea of a national Bitcoin reserve.

This notion saw traders pile into Bitcoin, on bets that the token would gain more credibility as an investment vehicle.

But focus was now on exactly what Trump’s policies would entail for crypto, as he went about picking members of his cabinet.

Trump is set to take office in early-2025.

A risk-on rally in broader financial markets also appeared to have cooled, amid some uncertainty over the outlook for interest rates.

Trump is expected to dole out expansionary policies, which are expected to underpin inflation and interest rates in the long term.

Dogecoin extends gains after Trump forms DOGE

Meme token Dogecoin rose on 9.1% to $0.394493 on Thursday, extending recent gains and remaining close to its strongest level since May 2021.

Traders speculated whether Trump’s DOGE agency was a reference to the meme token, and whether it would entail any official recognition of Dogecoin.

But analysts argued that DOGE- which Trump claimed was formed to streamline government operations and cut spending- would have little actual authority to make major changes.

GLJ Research said the entity was “a toothless committee formed to make a few billionaires feel important.”

Crypto price today: Altcoins upbeat, largely unfazed by CPI data

Most major altcoins tracked gains in Bitcoin, although they traded below peaks hit earlier in the week.

World no.2 crypto Ether rose 2.5% to $3,216.79, while SOL, XRP, XRP and MATIC rose between 2% and 9%.

Crypto markets were largely unfazed by data showing U.S. consumer inflation remained sticky in October, with the reading sparking uncertainty over the long-term outlook for interest rates.

Focus later on Thursday is an address by Federal Reserve Chair Jerome Powell.