Bitcoin has broken the historical record of $106,000

Overnight, bitcoin overcame a historical high and reached $106,491. This growth, exceeding 4%, was due to expectations of an interest rate cut by the US Federal Reserve. A similar trend was observed in the Ethereum market, which also jumped by more than 4%, approaching the $4,000 mark.

Investors have no doubt that the Fed will cut interest rates at its two-day meeting, which ends on Wednesday. Analysts predict a probability of a 25 basis point decline at 96%. Bitcoin is often viewed as a technological action and such a decision can have a positive impact on its price. 

A decrease in interest rates, according to experts, can lead to a weakening of the dollar and an increase in the money supply, which in the long run favors bitcoin. 

Bitcoin has grown by almost 8% over the past month, by 50% since the US presidential election, and by an impressive 145% over the year. The growth of the digital asset, as well as the cryptocurrency market in general, is stimulated by expectations of a more friendly regulatory environment and the possible creation of a national strategic reserve of bitcoin.