As investors awaited the Federal Reserve’s anticipated interest rate cut later this week, bitcoin surged to a new all-time high on Monday.
According to Coin Metrics, the flagship cryptocurrency’s price was last up about 3% at $106,126.74. It had previously reached a new high of $107,229.38.Ether surged 3% to surpass the crucial $4,000 mark. The whole cryptocurrency market, as indicated by the CoinDesk 20index, saw a rise of almost 1%.
Cryptocurrency stocks returned their earlier gains.Coinbase saw a rise of almost 1%. Bitcoin proxy sharesFollowing the announcement on Friday night that MicroStrategy would join the Nasdaq-100 stock index and the highly traded QQQETF later this month, the stock dipped below the flat line after rising as much as 7%.
Michael Saylor, the creator of MicroStrategy, also revealed that the company has purchased an extra 15,350 Bitcoin, increasing its total holdings to 439,000, which is valued at almost $46 billion.
At its two-day policy meeting, which ends on Wednesday, investors anticipate that the Fed will cut interest rates this week. There is currently a 96% possibility of a 25 basis point drop, according to the CME FedWatch Tool. The price of bitcoin, which frequently trades like a tech stock and hence benefits from reduced interest rates, would probably rise as a result.
Additionally, lower interest rates are indicative of a growing money supply and a declining dollar, both of which have shown long-term relationships with bitcoin.
Since the U.S. presidential election, Bitcoin has increased 52%, 149%, and 9% so far this month. The digital asset and cryptocurrencies in general continue to benefit from the incoming Trump administration’s pledge of a more lenient regulatory framework and the possible creation of a national strategic bitcoin reserve.
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