Bitcoin (BTC) has risen to a new all-time high above $106,500 U.S. as investors prepare for an upcoming interest rate cut from the U.S. Federal Reserve.
The largest cryptocurrency by market capitalization rose more than 4% in the past 24 hours to trade at a record high of $106,509 U.S.
Bitcoin has since pulled back and is currently changing hands at $1104,500 U.S.
Ethereum (ETH), the second largest cryptocurrency, has also increased and is trading just below the key level of $4,000 U.S.
The rally in crypto comes with investors expecting the U.S. central bank to lower interest rates on Dec. 18 following its final two-day policy meeting of the year.
Futures traders are placing the odds that the U.S. Federal Reserve cuts interest rates by 25-basis points at 96%.
Bitcoin generally trades like a technology stock and tends to benefit from lower interest rates.
Lower interest rates also imply a weak U.S. dollar and growing money supply, both of which also benefit Bitcoin.
Bitcoin is now up nearly 8% in December, 50% since the U.S. presidential election held in November, and 145% for the year.
A friendlier regulatory environment and potential establishment of a national strategic Bitcoin reserve under president-elect Donald Trump continues to be a catalyst for crypto.
