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Bitcoin It hit a record high on Sunday night as investors wait for the U.S. Federal Reserve to cut interest rates later this week.
According to Coin Metrics, the price of the flagship cryptocurrency was last up more than 4% to $105,207.00. The previous record was $106,509. ether The stock also rose 4% to just below the key $4,000 level. The broader crypto market, as measured by the CoinDesk 20 index, rose 4%.
Number of shares of crypto assets coinbase and micro strategy There was little change in pre-market trading, even after MicroStrategy joined the Nasdaq 100 stock index and was actively traded. QQQ ETFs at the end of this month.
Bitcoin rises to new levels above $106,000
Bitcoin’s rise came after the tech-heavy Nasdaq Composite Index outperformed other major stock indexes on Friday, ending the U.S. trading week up 0.3%.
Investors expect the Fed to cut interest rates this week at its two-day policy meeting, which concludes on Wednesday. The CME FedWatch tool currently projects a 96% chance of a 25 basis point (bp) rate cut. This will likely be positive for Bitcoin’s price. Bitcoin often trades like a tech stock and thus benefits from low interest rates.
Lower interest rates also mean a weaker dollar and higher money supply, both of which have proven long-term correlations with Bitcoin.
Bitcoin is currently up nearly 8% for the month, 50% since the US presidential election, and 145% for the year. The promise of a more friendly regulatory environment and possible establishment of a national strategic Bitcoin reserve under the incoming Donald Trump administration continues to be a positive catalyst for digital assets and cryptocurrencies overall.
