Bitcoin Price Today Near $90K: Trump’s Boost Powers Surge as Dogecoin Rallies

Bitcoin Price Today Near $90K

Bitcoin and other cryptocurrencies surged on Thursday by a high percentage, reaching near $90,000 for the first time for Bitcoin as rallies around potential pro-crypto rules under Donald Trump in the new presidential term strengthen optimism.

In general, speculation about regulatory changes and optimism for the economy have shed light on both Bitcoin and Dogecoin, attracting much investment interest.

On Thursday, Bitcoin surged 3.8% to $89,885.4, just shy of the current historical high of $93,226.6 it touched the day before.

The rise in price for Bitcoin is reflecting growing hopes that a friendlier regulatory environment for cryptocurrencies may soon be in place under the stewardship of Donald Trump, who has been elected president for 2024.

Trump has been vocal in their support for the crypto market and may soon ensure it materializes in making the U.S. a globally renowned hub for the same.

He has even floated the idea of creating a national Bitcoin reserve, leading traders to speculate that Bitcoin may soon gain greater acceptance as an investment asset under his administration.

Trump’s endorsement of cryptocurrencies has sent many investors into Bitcoin, which is betting on a future fairly regulated environment.

There are not many clues at present as to what this crypto-friendly future might look like, although investors are watching the choices made by the team in Trump’s cabinet and his policy proposals.

But uncertainty remains, particularly with respect to his monetary policy approach. Trump’s projected economic policies are indeed skewed toward expansionary measures. These will keep inflationary and interest rates up, giving a mixed outlook for financial markets.

 Dogecoin gains as speculation mounts about Trump’s DOGE agency

While Bitcoin remains the star attraction, meme token Dogecoin also saw some momentum, surging 9.1% on Thursday to $0.3945, a level not seen since May 2021.

The surge of this meme-based token is off the self-proclaimed observation by social media analysts since the new “Department of Government Efficiency,” or DOGE, announced by Trump includes the CEO of Tesla Elon Musk and a pharmaceutical executive, Vivek Ramaswamy, at the helm.

Trump said he would nominate Elon Musk and Vivek Ramaswamy to lead this new agency, one that is supposed to transform the workings of the government into streamlined and low-cost operations.

Moreover, some investors believe the establishment of the DOGE agency to be the first step in the recognition of Dogecoin and that this is creating high interest in the coin.

Contrary to this, analysts from GLJ Research claimed that this DOGE agency is just symbolic with no real regulatory capability. It has instead been an act to make some media buzz and attract additional support for cryptos.

 Broader Crypto Market Remains Strong

That rally also propelled other top cryptocurrencies. For example, the second-biggest cryptocurrency Ethereum rose 2.5% to $3,216.79.

Other altcoins like Solana (SOL), XRP, and Polygon (MATIC) reacted well and surged between 3% and 9%, against a backdrop that included a strong dollar.

The price of the U.S. currency reached its strongest in a year after going public with the release of consumer price index data showing climbing inflation.

While inflation data might normally have been a recipe for dissuading risk-on investments like cryptocurrencies, this was never enough to deter investors from the crypto market.

This resilience suggests that expectations of a Trump-led crypto renaissance outweigh concerns about inflation and potential Federal Reserve policy changes for the moment.

 Inflation Data and Federal Reserve Outlook

Consumer price inflation data for the United States, released in October, reveals that inflation is still way too high and raises the question of how monetary policy decisions going forward will be made by the Federal Reserve.

The data tells that inflation may persist longer than what experts once expected; it really complicates the economic picture and gives effects potential on future monetary policies.

During an inflationary period, inflation often creates a dampener on growth assets like cryptocurrencies as investors seek stable value.

The impact of these inflationary fears seemed to be ignored as crypto markets remained fixated on what would turn out to be a pro-crypto shift in the regulations of the U.S. under President Trump.

Later in the day Thursday, Federal Reserve chair Jerome Powell speaks on the current situation of the economy, and this may affect investor sentiment even more.

The comments by Powell are expected to further elaborate on how the Federal Reserve is going to deal with inflation and interest rates in the near term.

Market Reaction and future view:

In total, it is optimism concerning perceived support by Trump to the crypto industry that has continued pushing prices higher than would have been the case if there was such economic headwind.

Currently, as expected, Bitcoin and Dogecoin have especially attracted the attention of investors who believe that Trump’s policies are bringing an opportunity for the sector to shine.

While the rally by Dogecoin remains speculative and is firmly based on social media hype, Bitcoin’s upward drive is better founded, incorporating, for example, the notion that it would be legitimized as an investment tool within the U.S. financial system.

Investors are going to be paying close attention as the economic policies under Trump begin to take shape, particularly with regard to digital currencies.

The further along the steps towards crypto-friendly regulations, whatever form they take tax breaks and greater inclusion within the financial system, for instance will propel Bitcoin and other cryptocurrencies to new heights.

Though, there will always be some sensibility to signs the Fed intends to continue to hike their rates to quash inflation.

In the near term, it is likely that cryptocurrencies should continue to thrive under positive factors including optimism toward regulatory changes and interest in the use of digital assets as a hedge against economic uncertainty.

For now, market momentum remains buoyed by expectations that Trump’s leadership will favor the crypto sector, but investors will remain on high alert for economic signals that might temper this optimism.