Bitcoin advances after initially impacted by FOMC minutes

Bitcoin has recovered from its recent decline earlier in the week, trading 4.02% higher over the past 24 hours and peaked to $44790, but at the time of writing, Bitcoin is trading at $44333 up by 3.45%.

Analysts attribute this to uncertainty from the Fed on the pace of rate cuts in 2024 and optimism about the timeline for approval of a bitcoin exchange-traded fund. The Nasdaq Composite and S&P 500 experienced losses, while the Dow Jones Industrial Average gained 0.3%.

The decline is attributed to the Fed’s hesitation about the number of rate cuts and when they could start, as demonstrated by the December Federal Open Market Committee minutes. Fed Funds Futures still call for six 25 basis point cuts in 2024 starting in March.

The Job Openings and Labour Turnover Survey (JOLTS) results also gave traders pause, with the ratio of job openings to unemployed workers remaining at 1.4x in November versus the average of 0.7x since December 2000. ADP data, on Thursday, jumped unexpectedly to 164K above estimates.

ETF speculation continues to move bitcoin, with analysts questioning the likelihood of an ETF getting the green light this month.