Bitcoin reached an all-time high on Sunday evening, surpassing the $106,000 mark, as investors eagerly await the Federal Reserve’s anticipated interest rate decision later this week. The cryptocurrency’s rally comes just 10 days after it crossed the $100,000 threshold on Dec. 5, marking a significant milestone in its recent upward trajectory.

Other cryptocurrencies like Ethereum, Litecoin, Coinbase and Dash also saw a spike in their mark with Ethereum rising over 4% on Sunday. The cryptocurrency rose over 77% in last 12 months. Litecoin rose as much 6.59% on the same day and another prominent cryptocurrency Dash rose as much as 7.36%. Elon Musk-backed Dogecoin also saw some gains, rising 4.17%.

With the Federal Reserve’s two-day policy meeting set to conclude on Wednesday, market expectations are high for a potential interest rate cut. The CME FedWatch Tool indicates a 97.1% chance of a rate reduction, which investors believe could further boost Bitcoin’s price. As a digital asset often seen akin to tech stocks, Bitcoin tends to benefit from lower interest rates, which stimulate investor risk appetite.

Lower rates also weaken the US dollar and increase the money supply, factors that have historically shown a correlation with Bitcoin’s rise. These dynamics, combined with growing institutional interest, have helped propel the cryptocurrency’s recent surge. Bitcoin has now gained over 14% in over a month, nearly 56% since the US presidential election, and a staggering 147% in last 12 months.

The optimism surrounding Bitcoin is also fueled by expectations of a more crypto-friendly regulatory environment under the incoming administration of President-elect Donald Trump. Trump’s campaign promises to make the US a global leader in cryptocurrency, coupled with victories by crypto allies in the House and Senate, have bolstered market sentiment. Additionally, the potential establishment of a national strategic Bitcoin reserve has added to positive market speculation.

Bitcoin’s rally reflects broader optimism for the digital asset market, with many investors anticipating further gains in the coming months.

. Read more on Crypto by NDTV Profit.Bitcoin’s rally comes just 10 days after it crossed the $100,000 threshold on Dec. 5, marking a significant milestone in its recent upward trajectory.  Read MoreCrypto, Markets, Business, Notifications 

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