Ether climbed 8% as easing oil prices and a declining U.S. dollar supported a recovery across financial markets. However, cryptocurrency investors remained cautious as they assessed the possibility of further delays to digital asset legislation in Washington.
Bitcoin maintained its position above $80,000 on Thursday as the crypto market rebounded alongside equities following Democratic victories in both chambers of Congress. Zcash emerged as one of the strongest performers among major cryptocurrencies, recording double-digit gains.
CoinGecko data showed Bitcoin trading at approximately $80,484 during Asian trading hours, marking a 5.7% increase over 24 hours. Ether advanced 8% to around $2,425, while XRP climbed 4.7% to $1.31. Solana added 5.9% to reach $96, and BNB rose 4.2% to approximately $715.
Zcash gained 11.7%, trading near $1,318 as its 24-hour trading volume reached $1.2 billion. The privacy-focused cryptocurrency allows users to conduct encrypted transactions that conceal the sender, recipient, and transferred amount.
The gains followed a sharp decline earlier in the week after U.S. election results emerged. Bitcoin briefly dropped to approximately $75,700 early Wednesday before recovering as buying activity returned to the market.
Jeff Mei, chief operating officer at crypto exchange BTSE, told CoinDesk that Bitcoin’s rebound reflected the broader recovery in equities. He attributed the improved sentiment to expectations that the Iran conflict could move toward resolution, potentially easing pressure from elevated oil prices.
Brent crude recorded a decline of more than 8% on Wednesday as investors anticipated that Democratic control of Congress could increase pressure to end the Middle East conflict. Falling energy costs could also help moderate inflation and reduce expenses for businesses.
Meanwhile, U.S. equities advanced, with the S&P 500 gaining 1.6%, while the dollar weakened.
Asian markets presented a mixed picture on Thursday. Samsung Electronics and SK Hynix shares fell more than 6% amid concerns about increased scrutiny of data center operations. In contrast, Chinese technology stocks rallied, with Tencent and Alibaba each gaining more than 5%.
Despite the market recovery, Mei warned that the election results could make progress on U.S. cryptocurrency legislation more difficult.
He argued that the CLARITY Act, in its existing form, faces limited chances of approval, while expectations for interest rate cuts remain weak. The proposed legislation seeks to clarify how cryptocurrency markets should be regulated in the United States.
Zcash’s gains also came as members of its community discussed potential regulatory challenges under the incoming Congress.
A policy memo published on the Zcash forum Wednesday warned that lawmakers could increase their focus on financial privacy and illicit financial activity. The document defended privacy-preserving payments by emphasizing their role in consumer protection, business confidentiality, and civil liberties.
Zcash NU7 Upgrade Adds to Market Interest
Zcash is also preparing for its next network upgrade, NU7, which is expected around Friday. The planned changes will reduce the target block interval from 75 seconds to 25 seconds.
The shorter interval could speed up transaction confirmations and help exchanges process deposits more quickly. For instance, a platform requiring three confirmations could reduce the expected waiting period from nearly four minutes to approximately 75 seconds, assuming its confirmation policy remains unchanged.
Mei also advised market participants to follow potential amendments to the CLARITY Act and monitor whether the new congressional leadership launches additional investigations into the cryptocurrency industry.
The incoming Democratic majorities are expected to take office on January 3, setting the stage for further debate over digital asset regulation and the future of crypto legislation in the United States.
