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Bitcoin hit a new all-time high Sunday evening as investors awaited an expected interest rate cut by the Federal Reserve later this week.
The price of the flagship cryptocurrency recently rose more than 4% to $105,207.00, according to Coin Metrics. Earlier, it hit a new record high of $106,509. Ether also rose 4%, climbing just below the key $4,000 level. The broader crypto market, as measured by the CoinDesk 20 Index, gained 4%.
Crypto Stock Actions Coinbase And MicroStrategy were little changed in premarket trading, even after the announcement of MicroStrategy’s entry into the Nasdaq 100 stock index, and were heavily traded. QQQ ETF later this month.
Bitcoin hits new level above $106,000
Bitcoin’s rally came after the tech-heavy Nasdaq Composite closed the U.S. trading week on Friday with a 0.3% gain, outperforming other major stock indexes.
Investors expect the Fed to cut interest rates this week at its two-day policy meeting, which ends Wednesday. The CME Fedwatch tool currently projects a 96% probability of a 25 basis point cut. This would likely be positive for the price of bitcoin, which often trades like a tech stock and therefore benefits from lower interest rates.
Lower interest rates also imply a weakening dollar and a growing money supply, two phenomena that have demonstrated long-term correlations with Bitcoin.
Bitcoin is now up almost 8% for the month, 50% since the US presidential election and 145% for the year. The promise of a friendlier regulatory environment and the potential creation of a national strategic bitcoin reserve in the new Donald Trump administration continues to be a positive catalyst for digital assets and cryptocurrencies in general.
