Investors have pushed Bitcoin to new heights as it surged past $105,000 on Sunday, fueled by expectations of an interest rate cut by the Federal Reserve later this week. The flagship cryptocurrency has seen significant gains in recent months, including a 50% increase since the U.S. presidential election and a whopping 145% gain for the year.
According to Coin Metrics, Bitcoin’s price rose by over 4% to $105,207, while Ether also climbed 4%, reaching just below the key $4,000 level. The broader crypto market followed suit, with the CoinDesk 20 index gaining 4%.
The tech-heavy Nasdaq Composite outperformed other major stock indexes on Friday, closing with a 0.3% gain and setting the stage for Bitcoin’s rally. Investors expect the Fed to lower interest rates this week, which could boost Bitcoin’s price due to its correlation with a weakening dollar and growing money supply.
Bitcoin is now up nearly 8% for the month and has seen substantial growth since the U.S. presidential election. The promise of a friendlier regulatory environment and potential establishment of a national strategic bitcoin reserve in the incoming administration continues to be a positive catalyst for the digital asset and cryptocurrencies at large.
Source: https://www.cnbc.com/2024/12/16/crypto-market-today.html