The price of Bitcoin surpasses a new record of $106,000, with investors anxiously anticipating the upcoming Fed decision.

• The Federal Reserve's anticipated interest rate cut caused Bitcoin to reach a new all-time high on Sunday evening.
• This week, the Fed is expected to lower interest rates during its two-day policy meeting, which ends on Wednesday.
• Bitcoin has experienced a 72% increase in value since the U.S. presidential election and a 145% rise in worth this year.

On Sunday evening, the stock market reached a new record high, with investors anticipating an impending interest rate reduction by the Federal Reserve.

The flagship cryptocurrency reached a new record of $106,509, rising 4% and climbing to just below the key $4,000 level. The broader crypto market, as measured by the CoinDesk 20 index, also gained 4%.

Despite the news that MicroStrategy will join the Nasdaq 100 stock index and heavily trade the ETF later this month, shares of crypto equities and were little changed in premarket trading.

The Nasdaq Composite's 0.3% gain on Friday was the reason for Bitcoin's rally, which outperformed the other major stock indexes.

This week, during its two-day policy meeting, the Fed is predicted to lower interest rates by 25 basis points, according to the CME Fedwatch tool. This has a 96% chance of occurring and would positively impact the price of bitcoin, which tends to trade like a tech stock and profits from lower interest rates.

Lower interest rates are associated with a weaker dollar and an expanding money supply, which have both been linked to a rise in the value of bitcoin over the long term.

Bitcoin has experienced a 7.9% increase in value this month, a 49.9% rise since the U.S. presidential election, and a 144.7% gain for the year. The prospect of a more favorable regulatory climate and the possibility of a national strategic bitcoin reserve under the incoming Donald Trump administration continue to drive the growth of the digital asset and the broader cryptocurrency market.