Caution Drives Up Gold Prices, Deters Bitcoin Investors: Crypto Daybook Americas

Crypto Daybook Americas is taking a temporary break, resuming on January 5 with our regular updates on overnight market activity and the day's upcoming events. Wishing you a joyous holiday season! By Omkar Godbole (All times are ET unless otherwise specified) The cryptocurrency market remains subdued as it awaits the US GDP report, expected to show steady growth in the third quarter. Bitcoin, the largest cryptocurrency by market value, dipped to $87,500 after failing to sustain gains above $90,000 on Monday. All 16 CoinDesk indexes have declined over 24 hours, with the DeFi Select index down 4% and the metaverse index losing over 3%. HASH and RAIN are the only top-100 tokens to have gained more than 6% in the past 24 hours. The overall market weakness is puzzling, given the dollar index's continued decline, which typically benefits risk assets like cryptocurrencies. The DXY has fallen below 98.00 and is nearing its lowest level since early October. According to Alex Kuptsikevich, FxPro's chief market analyst, 'This occurs against a backdrop of significant gains in gold and other precious metals, as well as a weakening dollar. This shift in risk attitude is also reflected in the sell-off of global bonds.' Kuptsikevich expects 'a more pronounced decline in cryptocurrencies in the coming weeks, along with the spread of risk aversion to stocks and currencies of developing countries.' At 8:30 a.m., the US Bureau of Economic Analysis will release its preliminary estimate for the third-quarter GDP. Most economists predict an annualized growth rate of 3.2%, with some expecting as high as 3.5%. These figures indicate a slowdown from the second quarter's 3.8% pace but still exceed the 2.6% average since late 2021. A weaker-than-expected GDP report could boost demand for BTC, but it remains to be seen whether it will sustainably push prices above $90,000, a level that has acted as a resistance point. In traditional markets, S&P 500 and Nasdaq futures are relatively unchanged, indicating a lack of clear direction at the opening bell. Historically, these indexes have performed well during the year's final days. Gold's rally continues, approaching $4,500 per ounce. The yen has strengthened against the dollar on speculation that the Bank of Japan may intervene in FX markets to halt the currency's recent decline. Stay alert! Read more: For analysis of today's altcoin and derivatives activity, see Crypto Markets Today. What to Watch For a comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. Token Events For a comprehensive list of events this week, see CoinDesk's Crypto Week Ahead. Conferences For a 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