Bitcoin Surpasses $107,000 Ahead of This Week’s Fed Decision

Bitcoin It hit 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 last rose nearly 4% to $107,093.59, surpassing $107,000 for the first time. ether rose 1.5% to just below the key $4,000 level. The largest crypto market, measured by the CoinDesk 20 index, traded up 2.9%.

Among crypto stocks, Coinbase it was 3.8% higher. Bitcoin proxy actions MicroStrategy increased by 4.8% following Friday evening’s announcement that MicroStrategy will join the Nasdaq-100 stock index and highly traded QQQ ETF at the end of this month. MicroStrategy founder Michael Saylor also announced that the company bought an additional 15,350 BTC.

Investors are waiting for the Fed to lower interest rates this week during their two-day policy meeting, which will conclude 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 as a technology security and therefore benefits from lower interest rates.

Lower interest rates also imply a weakening dollar and a growing money supply, both of which have shown long-term correlations with bitcoin.

Bitcoin is 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 establishment of a national strategic bitcoin reserve to the incoming Trump administration remains a positive catalyst for the digital asset and cryptocurrencies in general.