Risk Aversion Drives Gold Up, Hurts Bitcoin: A Look at the Americas Crypto Market

The Crypto Daybook Americas is taking a temporary break starting Wednesday, resuming on January 5 with daily insights into overnight market movements and upcoming events. Wishing you a joyous holiday season! The cryptocurrency market remains subdued ahead of the US GDP data release, expected to show the world's largest economy remained steady in Q3. Bitcoin, the largest cryptocurrency, dropped to $87,500 after failing to sustain gains above $90,000 on Monday, with all 16 CoinDesk indexes down over 24 hours. The DeFi Select index fell 4%, and the metaverse index lost over 3%, while HASH and RAIN were the only top-100 tokens to gain over 6% in the past 24 hours. Despite the dollar index's continued decline, which typically favors risk assets like cryptocurrencies, the market's weak tone persists. According to Alex Kuptsikevich, FxPro's chief market analyst, this trend, coupled with the rally in gold and other precious metals, highlights a shift in risk attitude, also reflected in the global bond sell-off. Kuptsikevich expects a more pronounced decline in cryptocurrencies in the coming weeks, along with increased risk aversion in stocks and developing countries' currencies. The US Bureau of Economic Analysis will release its preliminary estimate for Q3 GDP at 8:30 a.m., with most economists predicting a 3.2% annualized growth rate. A weaker-than-expected print could boost demand for BTC, but it remains to be seen if it will sustainably push prices above $90,000. Traditional markets show little change, with futures tied to the S&P 500 and Nasdaq indicating a lack of directional clarity. Gold's rally continues, approaching $4,500 per ounce, while the yen strengthened against the dollar on speculation of the Bank of Japan's potential intervention in FX markets.