USD Hovers Approach One-Week Peak, Bitcoin Accumulates Due to ETF Optimism

Yahoo News reports that the dollar regained ground against major rivals on Tuesday and hovered near a one-week high, while bitcoin extended its momentum on optimism that exchange-traded spot bitcoin funds could soon be approved by U.S. regulators. In early Asia trade, the dollar gained a small margin against the yen, reaching 147.23, aided by a deceleration in core consumer inflation in Tokyo, which exerted a depreciating force on the Japanese yen. In contrast, the dollar index was last seen at 103.59, while the euro meandered near a three-week low reached on Monday at $1.0840. In contrast, the dollar index was near a peak of over one week ago at $103.54.

Analysts assert that a portion of the greenback's ascent can be attributed to a reversal of its heavy selloff in recent weeks. The dollar index experienced its steepest monthly decline in a year, declining approximately 3% in November. Numerous U.S. economic indicators are scheduled for release this week; the non-manufacturing ISM figures for November, which are released later on Tuesday, and the nonfarm payrolls report, which is closely followed, will offer additional insight into the potential trajectory of interest rates. Traders have virtually factored in a Federal Reserve rate reduction by the first half of the following year.

Bitcoin last traded at $41,873, which was not far below its all-time high of $42,404 from the previous session—a level not seen since April 2022. Amid expectations of a rate cut by the United States and speculation that American regulators will soon sanction exchange-traded spot bitcoin funds (ETFs), thereby granting access to the bitcoin market to millions of additional investors, the largest cryptocurrency in the world has surged by about 153% this year. The amount of $40,000. Ever since Bitcoin surpassed $30,000. That is to say, since late October. $40,000. "It was only a matter of time before the next round number failed, given the frenzy surrounding a spot ETF," said Antoni Trenchev, co-founder of the cryptocurrency services firm Nexo.