Early Monday, Bitcoin (BTC-USD, Financial) shot beyond $106,000, peaking at $106,449, before dropping to $104,191, at the time of writing.
The rally in cryptocurrency comes ahead of the Federal Reserve meeting this next week, when policymakers are supposed to announce yet another interest rate cut. The conference starts Tuesday; a decision on monetary policy is scheduled for Wednesday.
Powell's comments are under rigorous examination by investors looking for hints on the speed of next rate reductions. Any sign of a slower or less aggressive strategy might contradict the continuous boom in risk assets like Bitcoin, which has jumped around 50% since Donald Trump's win in the U.S. presidential elections.
The explosive rise of Bitcoin emphasizes its ongoing attraction as a speculative asset, especially in a setting of more relaxed monetary policy. But the retreat from intraday highs points to residual caution among traders before important central bank announcements.
