The king of cryptocurrency, Bitcoin, reached the highest level of the year at $42,497. This increase is attributed to the data released after the opening of the US markets and the attention given to cryptocurrencies by the US Treasury Secretary.
The job openings data released by the US Bureau of Labor Statistics fell below market expectations, dropping to 8.7 million, which is interpreted as a sign of weakening employment. The job openings data that fell below expectations in October became an important indicator in the Fed’s fight against inflation.
While job openings were expected to be 9.3 million in October, there were significant declines in financial activities and the retail sector. This data increases optimism for expected interest rate cuts by the Fed in the coming year, and if inflation continues at the same pace, a rate cut of more than 100 basis points may be made in 2024.
US Treasury Secretary Yellen states that cryptocurrencies, especially stablecoins, require legal supervision and action needs to be taken. However, due to the pressures from Democratic Party member Gary Gensler, who believes that existing laws are sufficient and there is no need for cryptocurrency regulation, convincing steps have not yet been taken in the US.
One of the two pending bills in the US House of Representatives is related to stablecoins, and due to the weak support of the Democrats, it is unlikely to be passed even in 2024.