Bitcoin rises to new record above $106,000 as investors await this week’s Fed decision
- Bitcoin rallied to a new all-time high Sunday evening as investors awaited an expected interest rate cut by the Federal Reserve later this week.
- Investors are expecting the Fed to lower interest rates this week during its two-day policy meeting, which will conclude Wednesday.
Bitcoin rallied to a new all-time high on Monday as investors awaited an expected interest rate cut by the Federal Reserve later this week.
WATCH ANYTIME FOR FREE
 |
>Stream NBC10 Boston news for free, 24/7, wherever you are. |
The price of the flagship cryptocurrency was last higher by nearly 3% at $106,126.74, according to Coin Metrics. Earlier it rose as high as $107,229.38, a new record. Ether rose 3% to break through the key $4,000 level. The broader crypto market, as measured by the CoinDesk 20 index, traded more than 1% higher.
Crypto stocks gave back earlier gains. Coinbase rose more than 1%. Shares of bitcoin proxy MicroStrategy fell below the flat line after jumping as much as 7%, following the Friday evening announcement that MicroStrategy will join the Nasdaq-100 stock index and heavily traded QQQ ETF later this month.
Get updates on what's happening in Boston to your inbox. Sign up for our >News Headlines newsletter.
MicroStrategy founder Michael Saylor also announced that the company bought an additional 15,350 BTC, bringing its total holdings to 439,000 worth about $46 billion.
Investors are expecting the Fed to lower interest rates this week during its two-day policy meeting, which will conclude Wednesday. The CME FedWatch Tool currently forecasts a 96% chance of a 25-basis-point cut. That would likely be positive for the price of bitcoin, which often trades like a tech stock and therefore benefits from lower interest rates.
Lower interest rates also imply a weakening dollar and growing money supply, both of which have demonstrated long-term correlations with bitcoin.
Money Report
Bitcoin is now up 9% for the month, 52% since the U.S. presidential election and 149% for the year. The promise of a friendlier regulatory environment and potential establishment of a national strategic bitcoin reserve in the incoming Trump administration continues to be a positive catalyst for the digital asset and cryptocurrencies at large.
