Investing.com– Bitcoin rose on Thursday, remaining in sight of recent peaks as sentiment towards crypto markets was underpinned 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 announced the formation of the Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy.
rose 1.7% to $90,741.0 by 09:16 ET (14:16 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 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 crypto-friendly 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 rose to $0.4089 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.”
Republicans win House, another boost for crypto space
In other crypto-related developments, Republicans have retained control of the US House of Representatives, potentially paving the way for crypto-supportive lawmakers to advance digital asset legislation. According to The Associated Press, Republicans now hold a majority with 218 seats, while Democrats maintain 208.
With this shift, Republicans are expected to lead the influential House Financial Services Committee, which oversees agencies like the SEC and the Federal Reserve. Current chair Rep. Patrick McHenry, known for pushing stablecoin regulations and crypto market structure legislation, will retire in January 2025.
His leadership helped advance a bill giving the Commodity Futures Trading Commission new authority over “digital commodities” while leaving the SEC to regulate digital assets tied to investment contracts.
A new committee chair is likely to be named soon, with potential contenders including Reps. French Hill, Andy Barr, Bill Huizenga, and Frank Lucas — all known for their crypto-friendly stances. Hill, who chairs the committee’s digital asset panel, has been active in advancing crypto-related bills, especially on stablecoins.
Crypto price today: Altcoins mixed after CPI data
Most major altcoins tracked gains in Bitcoin, although they traded below peaks hit earlier in the week.
World no.2 crypto retreated 2% to $3,176.03, while and advanced 2% and 3.2%, respectively. Meanwhile, fell 4%.
The moves come after data showed that U.S. consumer inflation remained sticky in October, as the reading sparked uncertainty over the long-term outlook for rates.
Focus later on Thursday is an address by Federal Reserve Chair Jerome Powell.
Ambar Warrick contributed to this report.
