* GDP data expected to show U.S. economy growing at 3.2 pct
* Bitcoin hits another all-time high
* Sterling strengthens on Brexit bill hopes
* N.Korea missile launch leaves little impact for now
* Graphic: World FX rates in 2017 http://tmsnrt.rs/2egbfVh
LONDON, Nov 29 (Reuters) - The dollar steadied on Wednesday, recovering from an earlier dip as traders eyed U.S. GDP data due later in the day that is expected to show the world's biggest economy grew at a healthy clip of 3.2 percent annually in the third quarter.
Bitcoin was once again the most eye-catching mover, smashing past the $10,000 level for the first time to trade as high as $10,930 on the Bitstamp exchange after a more than elevenfold increase in value since the start of the year.
The dollar had earlier slipped, pulled down by broad strength in the British pound as well as worries over a possible U.S. government shutdown after Democrats pulled out of a budget meeting with President Donald Trump.
But it recovered to trade flat on the day by 1230 GMT , with the euro also giving up earlier gains to trade flat at $1.1832.
Having earlier this year hit a 14-year high, the U.S. currency is now on track for its worst annual performance in 14 years.
"The economy is ticking along nicely, and inflation is on the rise," said Yann Quelenn, strategist at online bank Swissquote. "(But) markets have recently punished the U.S. dollar. This is rooted in the U.S. Federal Reserves caution in tightening."
Jerome Powell, Trump's choice to lead Fed, made little mention of monetary policy in a controversy-free hearing on his nomination to take over the central bank on Tuesday.
"Powell didnt rock the boat in any major way...but theres enough debate going on in the FOMC (Federal Open Market Committee) in terms of whats behind low inflation to prompt a period of pause (in rate hikes) in the first half of next year," said MUFG macro strategist Derek Halpenny, in London.
He added that Britain's pound, which jumped late on Tuesday on hopes that Britain would reach a divorce bill deal with the European Union and extended gains on Wednesday, was helping to drag down the dollar across the board.
Data on Tuesday showed U.S consumer confidence surged to a near 17-year high in November, driven by a robust labour market, giving the dollar a modest boost.
The currency market appeared unaffected by a North Korean test launch of what appeared to be an intercontinental ballistic missile (ICBM) that landed close to Japan. It was North Korea's first test launch since mid-September.
"The market appears to have gotten used to such events. How the United States responds, however, still bears watching," said Shin Kadota, senior strategist at Barclays in Tokyo.
(Reporting by Jemima Kelly; Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Keith Weir and Raissa Kasolowsky)