Bitcoin surges above $106K as Fed decision looms
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Bitcoin (BTC-USD) surged above $106K on Monday before paring some gains, as the Federal Reserve’s interest rate cut decision is expected to come in the week.
The cryptocurrency had hit $106,449, but retreated back to $104K soon enough. BTC was up 2.1% to $104,495 as at 5:35 am ET.
The Fed officials are widely expected to deliver another rate cut. The meeting will start on Tuesday, and the monetary policy decision will be announced on Wednesday. Investors will be more keen to hear what Fed Chair Jerome Powell has to say in the press conference after the decision is out.
There are concerns that if Powell hints at fewer or slower rate cuts ahead, then it could be more difficult for risk assets, like BTC, to continue their bull run.
BTC has surged ~50% since Donald Trump’s win in the U.S. presidential elections.
Trump had expressed his support for digital assets.
MicroStrategy (NASDAQ:MSTR) also gained 5% in premarket trade as the company will be added to the Nasdaq-100 Index, the exchange operator said.
Crypto-linked stocks were also higher in premarket trade. MicroStrategy (MSTR) +5.6%, Riot Platforms (NASDAQ:RIOT) +2.6%, MARA (NASDAQ:MARA) +3.8%, Bit Digital (NASDAQ:BTBT) +3.4%, Coinbase (NASDAQ:COIN) +2.3%, CleanSpark (NASDAQ:CLSK) +2.6%, Hut 8 Mining (NASDAQ:HUT) +4.2%, Cipher Mining (NASDAQ:CIFR) +4.2%, Hive Blockchain (NASDAQ:HIVE) +2.4%, Bakkt (NYSE:BKKT) +4% and Bitfarms (NASDAQ:BITF) +2.6%.