Gold Gains as Risk Aversion Impacts Crypto and Bitcoin: Americas Crypto Daybook

The Americas Crypto Daybook will be taking a temporary break starting Wednesday and will resume on January 5, providing you with a daily update on overnight market developments and upcoming events. Wishing you a joyous holiday season. By Omkar Godbole (All times are ET unless otherwise specified). The cryptocurrency market remains subdued ahead of the US GDP data release, which is anticipated to show the world's largest economy remained stable in the third quarter. Bitcoin, the largest cryptocurrency by market capitalization, dropped to $87,500 after failing to sustain gains above $90,000 on Monday. All 16 CoinDesk indexes have declined over the past 24 hours, with the DeFi Select index falling 4% and the metaverse index losing over 3%. HASH and RAIN are the only top-100 tokens by market capitalization to have gained more than 6% in the past 24 hours. The overall market sentiment is puzzling, given the ongoing decline in the dollar index, which typically favors risk assets, including cryptocurrencies. The DXY has fallen below 98.00 and is on the verge of reaching its lowest level since early October. According to Alex Kuptsikevich, chief market analyst at FxPro, "The rally in gold and other precious metals, combined with the weakening dollar, highlights a shift in the underlying risk attitude, also reflected in the global bond sell-off." "In the coming weeks, we can expect a more pronounced decline in cryptocurrencies, as well as the spread of risk aversion to stocks and currencies of developing countries," Kuptsikevich added. At 8:30 a.m., the US Bureau of Economic Analysis will release its preliminary estimate for the third-quarter gross domestic product. Most economists predict an annualized growth rate of 3.2% for the period, with some expecting a higher print of 3.5%. These figures indicate a slowdown from the second quarter's 3.8% pace but still exceed the 2.6% average maintained since late 2021. A weaker-than-expected print could potentially boost demand for BTC, although it will be interesting to see if it can sustainably push prices above $90,000, a level that has acted as a resistance lately. In traditional markets, futures tied to the S&P 500 and Nasdaq are largely unchanged, indicating a lack of clear direction at the opening bell. Historically, these indexes have performed well during the final days of the year. Gold's rally continues, with the metal approaching $4,500 per ounce. Meanwhile, the yen strengthened against the dollar on speculation that the Bank of Japan could intervene in FX markets to stall the currency's recent decline. Stay alert. Read more: For analysis of today's activity in altcoins and derivatives, see Crypto Markets Today. What to Watch. For a more comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. Token Events. For a more comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. Conferences. For a more comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. Market Movements. Bitcoin Stats. Technical Analysis. Crypto Equities. Crypto Treasury Companies. ETF Flows. Spot BTC ETFs. Spot ETH ETFs. Source: Farside Investors. While You Were Sleeping.