SEOUL — Bitcoin has again breached the ₩160 million mark, a level it hadn't seen in 19 days, as growing "risk-on" sentiment fuels market expectations that the U.S. Federal Reserve will soon lower its benchmark interest rate to combat concerns over stagflation.

According to domestic cryptocurrency exchange Upbit, Bitcoin's price surpassed ₩160 million around 7:20 a.m. on September 12, reaching as high as ₩161.5 million by 9:40 a.m.

The recent rally follows rising stagflation fears triggered by U.S. economic data, including an increase in new jobless claims and a rise in August's Consumer Price Index (CPI). Financial markets are now anticipating an imminent Fed rate cut this month.

This bullish sentiment has extended to traditional markets, with all three major U.S. stock indices hitting new record highs. Related cryptocurrency stocks have also seen significant gains; Circle, the issuer of USD Coin, surged 17.6% while Bitmain climbed 4.8%.

Experts believe additional positive catalysts are needed for further upward momentum. Kim Min-seung, head of Korbit's Research Center, stated that if the U.S. government releases a plan for acquiring Bitcoin—which it designated a strategic reserve asset in March—the price could see another significant boost.

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