Crypto Boom! Dogecoin Jumps 25% as Bitcoin Surpasses $87,000!

The price of bitcoin and other cryptocurrencies surged on Monday, continuing a rally that began last week following the reelection of former President Donald Trump. Bitcoin rose nearly 11%, surpassing $87,000 for the first time, setting a new record. Ether, the second-largest cryptocurrency, gained 5.5%, while lesser-known coins like Litecoin and Dogecoin saw significant increases, with Dogecoin jumping nearly 25%.

This surge is attributed to growing investor enthusiasm surrounding Trump’s promises to support the cryptocurrency sector. At a cryptocurrency conference in July, Trump vowed to make the U.S. the “crypto capital of the planet,” proposing to ease regulations and create the National Strategic Bitcoin Reserve. Additionally, he expressed intentions to replace Securities and Exchange Commission (SEC) Chair Gary Gensler, who has been criticized by crypto advocates for his tough stance on regulation.

The boom in digital asset prices significantly outpaced the U.S. stock market. While the S&P 500 rose 0.25% and the Dow Jones gained 0.75%, bitcoin’s sharp price surge highlighted the growing interest in cryptocurrencies. Bitcoin has seen a 122% increase in value since November 2023, partly due to the U.S. approval of Bitcoin ETFs in January, which allowed easier access to crypto investments.

Despite the recent rise, the crypto market remains volatile. The industry has recovered from the fallout of high-profile collapses like FTX and Binance, but it still faces significant risks. Experts warn that while cryptocurrencies are becoming more popular as a store of value, they are prone to rapid price fluctuations. As digital assets like bitcoin resemble “digital gold,” their volatility is expected to persist, even if Trump’s proposed regulatory changes are implemented.