It soared past $107,000.
Bitcoin reached a new all-time high on Monday as investors anticipated an interest rate cut by the Federal Reserve later in the week. The leading cryptocurrency rose nearly 3% to $106,126.74, peaking at $107,229.38, setting a new record. Ether also gained 3%, surpassing the crucial $4,000 mark. Overall, the cryptocurrency market, as tracked by the CoinDesk 20 index, saw a rise of over 1%.
Crypto-related stocks, however, gave up some of their earlier gains. Coinbase saw a modest increase of over 1%, while MicroStrategy’s stock dipped after a 7% surge. This followed news that the company would join the Nasdaq-100 index and the QQQ ETF later this month. MicroStrategy’s founder, Michael Saylor, also announced the purchase of an additional 15,350 BTC, bringing the company’s total holdings to 439,000 BTC, valued at approximately $46 billion.
The expectation of a rate cut by the Federal Reserve this week has boosted optimism for Bitcoin, as it often behaves similarly to tech stocks, which tend to perform well when interest rates are lowered. A rate cut could also weaken the dollar and increase the money supply, both of which have historically been linked to the price of Bitcoin.
So far, Bitcoin has risen 9% in November, 52% since the U.S. presidential election, and 149% year-to-date. The anticipation of a more favorable regulatory environment, along with the potential creation of a national strategic Bitcoin reserve under the incoming Trump administration, continues to drive positive sentiment for Bitcoin and the broader cryptocurrency market.
