Key Points

• On December 18, the upcoming FOMC meeting could lead to a new interest rate cut of 25 bps.
• Bitcoin hit a new ATH above $106,000 earlier today, boosted by multiple factors amidst an optimistic market.

Today, Bitcoin reached a new ATH above $106,400, ahead of this week’s Federal Open Market Committee meeting which could lead to a new interest rate cut, according to predictions.

BTC’s price rally was sustained by multiple factors including Trump’s confirmation of a US BTC reserve, continued flows in BTC ETFs, and MicroStratgy’s addition to the Nasdaq 100 Index on Friday.

BTC Hits a New ATH Ahead of Fed’s Decision

At the moment of writing this article, BTC is trading above $105,000, up by over 3% today.

Earlier, the digital asset reached a new ATH above $106,000, hitting a market cap of $2.11 trillion.

Now, BTC’s market cap is $2.08 trillion.

BTC rose to a new ATH earlier as investors are waiting for the US Fed’s decision regarding a new interest rate cut. The FOMC meeting is scheduled to take place on December 18, and according to CME Group, the possibility of a new rate of 25 bps is now 97.1%.

A new interest rate cut in the US would be positive for BTC’s price, as historical rate cuts have boosted the value of the digital asset, as CNBC notes in a recent article.

Lower interest rates also imply a weakening dollar and growing money supply – both these factors have demonstrated long-term correlations with BTC so far.

Other BTC Price Triggers

Bitcoin’s price rally was sustained by continued inflows in BTC ETFs in the US which saw constant influxes since November 27.

The crypto products recorded a cumulative net flow of $35.6 billion since their January launch, surpassing the important $20 billion mark much faster than gold.

BTC’s price rally was also fueled by MicroStrategy’s addition to the Nasdaq 100 Index, an achievement that will offer exponential exposure to BTC to new potential investors.

MicroStrategy became the first Bitcoin-centric company in the world to be included in the Nasdaq 100 Index, setting a possible precedent for others to follow in its footsteps.

Also, the crypto market is filled with optimism stemming from the new upcoming Trump administration, especially since the new US President has recently confirmed the creation of a BTC Reserve in the US.

All these bullish moves set the stage for a new golden era for Bitcoin and the entire crypto industry in 2025.