Ether advanced 8% as a decline in oil prices and a weaker U.S. dollar lifted sentiment across financial markets. Despite the recovery, crypto traders continued evaluating how the Democrats’ control of Congress could affect the industry’s legislative outlook.

Bitcoin traded above $80,000 on Thursday as cryptocurrencies recovered alongside global stocks following Democratic victories in both chambers of Congress. Zcash outperformed other major digital assets, recording a gain of nearly 12%.

According to CoinGecko, Bitcoin was trading near $80,484 during Asian trading 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 $96, and BNB rose 4.2% to around $715.

Zcash jumped 11.7% to approximately $1,318, with its daily trading volume reaching $1.2 billion. The cryptocurrency is designed to support private transactions by allowing users to encrypt payment information, including sender and recipient identities and transaction amounts.

The market recovery came after Bitcoin experienced an initial decline following the U.S. election results. BTC briefly approached $75,700 early Wednesday before reversing course as buying demand returned.

Jeff Mei, chief operating officer of crypto exchange BTSE, told CoinDesk that Bitcoin’s upward movement reflected the recovery in traditional markets. He said investors were increasingly expecting the Iran conflict and elevated oil prices to become less of a concern.

Brent crude fell more than 8% on Wednesday as investors anticipated that Democratic control of Congress could increase pressure to end the conflict in the Middle East. A sustained decline in energy prices could ease inflationary pressures and lower business expenses.

U.S. equities also benefited from the improved sentiment. The S&P 500 advanced 1.6%, while the U.S. dollar weakened.

However, Asian markets showed mixed reactions. Samsung Electronics and SK Hynix shares declined more than 6% on Thursday as concerns about tighter data center scrutiny weighed on technology stocks. Meanwhile, Tencent and Alibaba gained more than 5% each as Chinese internet stocks advanced.

Crypto Legislation Faces Fresh Uncertainty After Election

Despite the positive price action, Mei warned that the election results could create additional challenges for cryptocurrency regulation in the United States.

He indicated that the CLARITY Act may struggle to pass in its current form, while the likelihood of further interest rate reductions remains limited. The proposed legislation aims to define regulatory responsibilities and establish clearer rules for U.S. digital asset markets.

Zcash’s rally has also developed alongside concerns about how the incoming Congress could approach financial privacy.

A policy memorandum shared on the Zcash forum Wednesday warned that lawmakers might increase scrutiny of privacy-focused financial services and illicit financial activity. It argued that private payment systems serve legitimate purposes, including protecting consumers, maintaining business confidentiality, and preserving civil liberties.

Zcash NU7 Upgrade Approaches as Trading Activity Increases

Zcash is preparing for its next major network update, known as NU7, which is expected around Friday. The upgrade plans to shorten the target block interval from 75 seconds to 25 seconds.

Reducing the time between blocks could help exchanges process deposits more efficiently. For example, an exchange requiring three confirmations could lower the estimated waiting time from nearly four minutes to approximately 75 seconds if its existing confirmation policy remains unchanged.

Mei advised traders to pay attention to potential amendments to the CLARITY Act and whether the incoming Congress launches further investigations into the cryptocurrency sector.

The new Democratic majorities are expected to take office on January 3. Their approach to digital asset legislation could become an important factor for the crypto industry, even as improving macroeconomic conditions support the latest market recovery.