Bitcoin crosses $106,000 as investors await Fed decision this week

Bitcoin It rose to an all-time high on Sunday evening as investors awaited an expected interest rate cut by the Federal Reserve later this week.

According to Koin Metrics, the price of the flagship cryptocurrency rose more than 4% at $105,207.00. Earlier, it reached a new record of $106,509. Ether It also rose 4%, rising below the key $4,000 level. The broader crypto market, as measured CoinDesk 20 the index gained 4%.

Crypto Stock Shares Coinbase and Microstrategy were little changed in premarket trading, even after following MicroStrategy’s announcement It will enter the Nasdaq 100 stock index and a lot of trading QQQ ETF this month.

Bitcoin’s rally came after the tech-heavy Nasdaq Composite closed the US trading week up 0.3% on Friday, outperforming the other major stock indices.

They are investors The Fed expects interest rates to fall at a two-day policy meeting this week, which ends on Wednesday. The CME Fedwatch tool currently forecasts a 96% chance of a 25 basis point cut. This 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 imply a weakening dollar and growing money supply – both of which have shown 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 and potential implementation of a friendlier regulatory environment a national strategic bitcoin reserve remains a positive catalyst for digital assets and cryptocurrencies in general during the incoming Donald Trump administration.