Bitcoin surpasses $106,000 ahead of this week’s Fed decision

Bitcoin It rose to a new all-time high before quickly retreating as investors await an expected interest rate cut by the Federal Reserve later this week.

On Monday, the price of the major cryptocurrency was up less than 1% at $103,873.00, according to Coin Metrics, after rising to $106,509 on Sunday night, a new record high for it. ether It rose less than 1% to just below the key $4,000 level. The broader cryptocurrency market, as measured by CoinDesk 20 The cursor, hovering below the solid line. They all rose as much as 4% on Sunday night.

Among the crypto stocks, Coinbase Little changed in pre-market trading. However, bitcoin proxy shares Accurate strategy jumped 4% Following Friday evening’s announcement that MicroStrategy It will join the Nasdaq 100 index Stock index and heavily traded QQQ ETF later this month.

Investors are Waiting for the Federal Reserve to lower interest rates This week during the two-day policy meeting, which will conclude on Wednesday. The CME FedWatch tool currently expects a 96% chance of a 25 basis point cut. This is likely positive for the price of Bitcoin, which often trades like technology stocks and therefore benefits from lower interest rates.

Lower interest rates also imply a weaker dollar and increased money supply, both of which have shown long-term correlations with Bitcoin.

Bitcoin is now up nearly 8% over the month, 50% since the US presidential election and 145% for the year. The promise of a friendlier regulatory environment and the potential to create a National Strategic Bitcoin Reserve In the incoming Trump administration, it remains a positive catalyst for digital assets and cryptocurrencies in general.