Bitcoin Soars 4% Amid Weakening US Dollar and MicroStrategy's New Purchase

Bitcoin experienced a significant surge on Monday, rising by more than 4%, driven by a combination of a weakening US dollar and positive news about MicroStrategy’s recent Bitcoin purchase. The digital currency surged by 4.28% in the past 24 hours, reaching $102,197.49, according to data from CoinMarketCap. This spike in value occurred while trading on the New York Stock Exchange and NASDAQ was suspended as of January 9.

MicroStrategy, a leading player in Bitcoin network development, added to its Bitcoin reserves, purchasing an additional 1,070 BTC worth approximately $101 million. With this acquisition, the company’s total Bitcoin holdings have reached 447,470 BTC, valued at over $44 billion.

The US dollar’s decline further fueled Bitcoin’s rise, with expectations of an interest rate cut by the Federal Reserve this year putting downward pressure on the dollar. These expectations grew after reports of potential new tariffs on key imports, easing concerns about rising tariffs on American goods. The diminishing inflationary pressures have raised expectations that the Fed will continue with its policy of interest rate cuts, which has positively impacted Bitcoin’s performance.

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