On Thursday, the price of bitcoin continued to rise above the historic milestone of $100,000 — first crossed earlier this December — amid speculation about the Federal Reserve’s upcoming interest rate cuts and ongoing optimism surrounding the world’s leading cryptocurrency.

In the past year, bitcoin’s price has spiked nearly 150% after a multitude of events, including the launch of America’s first bitcoin exchange-traded funds (ETFs), news of upcoming crypto policy changes under a new administration, and increased institutional adoption of bitcoin. Additionally, monetary policy expectations that the Federal Reserve will continue slashing interest rates are also impacting bitcoin’s price trajectory in the short-term.

The Federal Reserve is widely expected to cut interest rates next week, helping bitcoin prices stay above $100,000. Lowered interest rates typically drive investors to redirect capital to riskier assets like bitcoin.

Wednesday’s U.S. inflation data also revealed persistent inflationary pressures, making the probability of the Federal Reserve’s interest rate cuts increasingly likely.

Bitcoin is currently trading at $101,456.80 at the time of writing.

"Current levels are above the psychologically important round level and the consolidation area of the last three weeks," said Alex Kuptsikevich, FxPro chief market analyst. "A confirmation of buying strength could see a quick rally into the $120,000 area."

The world's second-largest cryptocurrency, ethereum, is currently trading at $3,971.93, representing a jump of 7%. "However, this is a rally and not a breakout to new highs," Kuptsikevich said. "It will be interesting to watch the price action as it enters the $4100 area. From this level, there are roughly equal chances of a sharp reversal to the downside and a break of resistance with a flight to the $5,000 area."