Cryptocurrencies saw an uptick today, with Ethereum, Dogecoin, and Shiba Inu experiencing notable price increases. This surge follows a friendlier regulatory environment promised by President Donald Trump and new economic data showing signs of easing inflation.
Ethereum, the world’s second-largest cryptocurrency, rose 4.2% today, while meme coins Dogecoin and Shiba Inu climbed 1.7% and 5.1%, respectively. The gains come as economic data pushed Treasury yields lower, which typically benefits crypto assets. The Institute for Supply Management reported that the Services Purchasing Managers’ Index (PMI) for January fell to 52.8, signaling that inflation may be easing. This has raised hopes that cryptocurrency prices could rise further.
President Trump’s administration has begun to fulfill his campaign promise of making the U.S. the crypto capital of the world. Many crypto stakeholders had criticized the previous administration for its unclear stance on regulation, which hindered progress in the sector. However, under Trump, the regulatory landscape is shifting to be more favorable for crypto.
David Sacks, the venture capitalist appointed by Trump as the White House’s crypto and artificial intelligence czar, told CNBC that he expects stablecoin legislation to pass in Congress within the next six months. Sacks also spoke about creating a “golden age” for digital assets. Additionally, the Securities and Exchange Commission (SEC) recently transferred its top litigator, Jorge Tenreiro, to a new role focused on information technology. This move marks a shift in the SEC’s aggressive stance on crypto.
The Federal Deposit Insurance Corporation (FDIC) also took a step forward, releasing nearly 800 documents showing how banks have been met with resistance when requesting approval to offer crypto services. FDIC Acting Chairman Travis Hill wrote that the agency is reevaluating its approach to crypto-related activities.
These moves by key agencies highlight the administration’s commitment to supporting the crypto sector. The regulatory clarity and reduced opposition from agencies like the SEC and FDIC are promising signs for cryptocurrency markets. Additionally, the easing of inflation has historically benefited crypto, which often behaves like tech stocks and thrives in low-interest-rate environments.
The upcoming non-farm payrolls report due on Friday could provide more insight into inflation trends. If the crypto bull market remains strong, these favorable conditions are likely to continue driving prices higher.
Among the cryptocurrencies seeing growth today, Ethereum stands out. With its robust technical network and broad use cases, Ethereum has the potential to see continued demand for its tokens. However, while Ethereum shows strong promise, the same cannot be said for meme coins like Dogecoin and Shiba Inu, which lack the technical backing and use cases of Ethereum.
The rise in Ethereum, Dogecoin, and Shiba Inu prices is a result of positive regulatory shifts and economic data signaling a decline in inflation. As these changes continue, the cryptocurrency market is likely to see further growth, with Ethereum remaining a top choice for investors.
