Cryptocurrency prices rose during trading on Monday, supported by Bitcoin's surge, amid growing expectations that the US Federal Reserve will cut interest rates at its January meeting.
Bitcoin came dangerously close to the psychologically important level of $90,000, having briefly surpassed it earlier in the session, but failed to hold onto those gains.
The world’s most popular and largest cryptocurrency by market capitalization rose 2.2% to trade at $89,663.6, amid low year-end trading volumes.
Bitcoin received strong support from the prospect of the Federal Reserve cutting interest rates further over the next year.
In general, low interest rates support high-risk assets, including cryptocurrencies, by reducing the appeal of cash and fixed-income investments, and encouraging flows toward higher-yielding alternatives.
Despite today's rise, Bitcoin's gains remain limited, due to profit-taking and declining liquidity, in addition to the prevailing caution among investors as the end of the year approaches.
As for the prices of other cryptocurrencies, the price of Ethereum, the world's second largest cryptocurrency, rose by 2.7% to $3,018.92.
The price of Ripple also rose by about 1.5% to $1.90, while Solana increased by about 2.7%, and Dogecoin and Trump Media both recorded a 1% increase.
In contrast, Cardano currency recorded a slight decline during today's trading.
