Bitcoin rose to a new all-time high on Monday as investors awaited an expected rate cut by the Federal Reserve later this week.
According to Coin Metrics, the price of the flagship cryptocurrency was last up almost 3% to $106,126.74. Previously, the price rose to $107,229.38, a new record. ether rose 3% and broke the key $4,000 mark. The broader crypto market, as measured by CoinDesk 20 Index, trading more than 1% higher.
Crypto stocks gave back earlier gains. Coinbase rose by more than 1%. Bitcoin Proxy Stocks Microstrategy fell below the flat line after rising as much as 7% following Friday night’s announcement that MicroStrategy will join the Nasdaq-100 Stock index and heavily traded QQQ ETF later this month.
MicroStrategy founder Michael Saylor also announced that the company purchased an additional 15,350 BTC, bringing its total holdings to 439,000, worth around $46 billion.
Bitcoin rises to new levels above $106,000
investors are They assume the Fed will cut interest rates this week during its two-day policy session that ends Wednesday. The CME FedWatch Tool currently forecasts a 96 percent chance of a 25 basis point cut. That would likely be positive for the price of Bitcoin, which often trades like a technology stock and therefore benefits from lower interest rates.
Lower interest rates also indicate a weakening dollar and a growing money supply, both of which have shown a long-term correlation with Bitcoin.
Bitcoin is now up 9% this month, 52% since the US presidential election and 149% this year. The promise of a friendlier regulatory environment and the possible establishment of one national strategic Bitcoin reserve in the new Trump administration continues to be a positive catalyst for digital assets and cryptocurrencies in general.
