Bitcoin has pulled back after reaching an all-time high.

Bitcoin reached an all-time high of $108,315 but has since dipped to $104,800 as the market awaits the Federal Reserve's decision on interest rates and contemplates Donald Trump's support for cryptocurrencies, reports IA "NewTimes.kz".

The largest cryptocurrency hit a new peak of $108,315 on Tuesday but retreated by Wednesday morning. According to CoinGecko, the total market capitalization of the cryptocurrency market approached $4 trillion at the peak of growth.

Trump, known for his commitment to economic innovation, promised friendly regulation for cryptocurrencies. He also proposed the creation of a strategic national Bitcoin reserve to ensure the technological dominance of the U.S.

Additional momentum for the market is being provided by the inclusion of MicroStrategy Inc. stocks in the Nasdaq 100 index. This company actively invests in Bitcoin, which boosts investor optimism.

The Federal Reserve is expected to lower rates by 0.25% at its meeting on Wednesday. However, future policy remains uncertain due to the resilient U.S. economy and inflation risks. Analysts at K33 Research predict that Bitcoin may continue to rise during the holiday season due to a decrease in macroeconomic factors.

Since Trump's victory in the election on November 5, Bitcoin has surged by more than 55%. Investors are putting money into exchange-traded funds despite volatility and signs of overheating. On Deribit, a platform for crypto derivatives, the highest interest is focused on bets for a price of $120,000.

However, analysts caution against being overly optimistic. For instance, Tony Sycamore from IG Australia believes that the current Bitcoin levels require a measured approach, especially in light of recent price corrections.