Bitcoin rallied to a new all-time high on Monday, reaching $106,126.74 as investors awaited an expected interest rate cut by the Federal Reserve later this week. The price of the flagship cryptocurrency rose by nearly 3% and earlier hit a record high of $107,229.38. Ether also rose 3% to break through the key $4,000 level, while the broader crypto market traded more than 1% higher.
Crypto stocks gave back earlier gains, with Coinbase rising more than 1% and MicroStrategy falling below the flat line after jumping as much as 7%. MicroStrategy founder Michael Saylor 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, which would likely be positive for the price of bitcoin. Lower interest rates imply a weakening dollar and growing money supply, both of which have demonstrated long-term correlations with bitcoin. 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.