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Bitcoin Interest rates rose to a new all-time high on Sunday evening, as investors awaited an expected rate cut by the Federal Reserve later this week.
The price of the major cryptocurrency was recently up more than 4% at $105,207.00, according to Coin Metrics. Earlier, it reached a new record of $106,509. ether It also rose by 4%, rising below the key level of $4,000. The broader cryptocurrency market, as measured by the CoinDesk 20 Index, rose 4%.
Cryptocurrency stocks Coinbase and Accurate strategy There was little change in pre-market trading, even after the announcement that MicroStrategy would join the Nasdaq 100 stock index and traded heavily. QQQ ETF later this month.
Bitcoin rises to a new high above $106,000
Bitcoin's rise came after the tech-heavy Nasdaq Composite on Friday ended the US trading week with a 0.3% gain, outperforming other major stock indexes.
Investors expect the Fed to cut interest rates this week during its two-day policy meeting, which will conclude on Wednesday. CME Fedwatch 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 point to a weaker dollar and a growing 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 possibility of creating a National Strategic Bitcoin Reserve in the incoming Donald Trump administration continues to be a positive catalyst for digital assets and cryptocurrencies in general.
