Bitcoin Stays Above $80K as Zcash Surges 12% in Post-Election Rally

Ether advanced 8% as declining oil prices and a softer U.S. dollar supported a wider market recovery, while investors continued assessing the potential impact of a more challenging regulatory environment for the U.S. crypto industry.

Bitcoin remained above the $80,000 threshold on Thursday as digital assets recovered alongside traditional markets following the Democrats’ victories in both chambers of Congress. Zcash outperformed most major cryptocurrencies, leading the gains among the largest digital assets.

According to CoinGecko data, Bitcoin was trading near $80,484 during Asian morning hours, representing a 5.7% increase over the previous 24 hours. Ether climbed 8% to approximately $2,425, while XRP advanced 4.7% to $1.31. Solana gained 5.9% to reach $96, and BNB increased 4.2% to around $715.

Zcash posted an 11.7% gain to approximately $1,318, with trading volume reaching $1.2 billion over the previous 24 hours. Its blockchain supports encrypted transactions that can hide the identities of senders and recipients, as well as the amounts being transferred.

The rebound followed an initial market downturn triggered by the election results. Bitcoin briefly declined toward $75,700 early Wednesday before buyers stepped in and pushed prices higher.

Jeff Mei, chief operating officer of cryptocurrency exchange BTSE, told CoinDesk that Bitcoin’s recovery mirrored the stock market’s performance as investors increasingly anticipated an end to the Iran conflict and the resulting pressure from elevated oil prices.

Brent crude prices dropped more than 8% on Wednesday as market participants anticipated that Democratic control of Congress could increase political pressure to bring the Middle East conflict to an end. Cheaper energy could help reduce inflationary pressures and lower operating expenses for businesses.

U.S. equities responded positively, with the S&P 500 rising 1.6%, while the dollar weakened against other major currencies.

Asian markets delivered a mixed performance on Thursday. Shares of Samsung Electronics and SK Hynix declined more than 6% as investors evaluated the possibility of increased regulatory scrutiny surrounding data centers. Meanwhile, Chinese technology companies performed strongly, with Tencent and Alibaba both advancing more than 5%.

Despite the broader recovery, Mei warned that the election outcome could create additional obstacles for cryptocurrency legislation in the United States.

He suggested that the CLARITY Act, in its current form, faces limited prospects of passing, while expectations for further interest rate reductions remain subdued. The proposed legislation aims to establish a clearer regulatory framework governing U.S. cryptocurrency markets.

Zcash’s price rally also coincided with concerns raised by members of its own community regarding the political environment following the election.

A policy document published on the Zcash forum Wednesday cautioned that financial privacy and illicit financial activities could receive increased attention under the incoming Congress. The memo defended private cryptocurrency transactions by highlighting their importance for consumer protection, commercial confidentiality, and individual civil liberties.

Zcash Upgrade Adds Momentum to Price Rally

Zcash is also approaching its next network upgrade, known as NU7, which is expected around Friday. The upgrade is designed to reduce the target interval between blockchain blocks from 75 seconds to 25 seconds.

Faster block production could allow exchanges and other platforms to credit incoming deposits more quickly. For example, an exchange requiring three transaction confirmations could see the expected waiting period decline from nearly four minutes to approximately 75 seconds, provided its confirmation requirements remain unchanged.

Meanwhile, Mei recommended that investors monitor proposed changes to the CLARITY Act and watch for further congressional investigations involving the cryptocurrency sector.

The incoming Democratic majorities are scheduled to take office on January 3, potentially shaping the next phase of U.S. crypto policy and legislative discussions.

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