Bitcoin It rose to an all-time high on Sunday evening as investors awaited an expected interest rate cut by the Federal Reserve later this week.

The price of the major cryptocurrency was last higher by more than 4% to $105,207.00, according to Coin Metrics. Earlier, it hit a new record of $106,509. Ether it also rose 4%, rising to just below the key $4,000 level. The broader crypto market, as measured by the CoinDesk 20 index, gained 4%.

Shares of crypto equities Coinbase and MicroStrategy were little changed in premarket trading, even after the announcement that MicroStrategy will join the Nasdaq 100 stock index and widely traded QQQ ETF later this month.

Bitcoin's rally came after the tech-heavy Nasdaq Composite on Friday closed the US trading week up 0.3%, outperforms the other major stock indexes.

The investors are expect the Fed to cut interest rates this week during its two-day political meeting, which will end on Wednesday. The CME Fedwatch tool currently predicts a 96% chance of a 25-basis-point cut. This is likely to be positive for the price of bitcoin, which often trades like a technology stock and therefore benefits from lower interest rates.

Lower interest rates also imply a weakening dollar and a growing money supply – both of which have shown long-term correlations with bitcoin.

Bitcoin is now up almost 8% for the month, 50% since the US presidential election and 145% for the year. The promise of an easier regulatory environment and the potential establishment of a national strategic bitcoin reserve in the incoming administration Donald Trump continues to be a positive catalyst for digital assets and cryptocurrencies in general.