Gold Surges as Investors Shun Risk, Hurting Bitcoin

Crypto Daybook Americas is taking a temporary break starting Wednesday, resuming on January 5 with its regular updates on overnight industry developments and the day ahead. Warmest wishes for a wonderful holiday season. By Omkar Godbole (all times ET). The crypto market remains subdued ahead of the US GDP data release, expected to show the world's largest economy held steady in Q3. 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 are down over 24 hours, with the DeFi Select index dropping 4% and the metaverse index losing over 3%. Only HASH and RAIN among the top-100 tokens by market cap have gained over 6% in the past 24 hours. The weak market tone is puzzling, given the dollar index's continued decline, which typically favors risk assets like cryptocurrencies. The DXY has fallen below 98.00, nearing its lowest level since early October. According to Alex Kuptsikevich, FxPro's chief market analyst, 'This development, against the backdrop of a significant rally in gold and other precious metals, as well as a weakening dollar, 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, alongside spreading risk aversion to stocks and emerging market currencies. The US Bureau of Economic Analysis will release its preliminary Q3 GDP estimate at 8:30 a.m., with most economists predicting an annualized growth rate of 3.2%, and some anticipating as high as 3.5%. A weaker-than-expected result could boost demand for BTC, though it remains to be seen if prices can sustainably exceed $90,000. 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 in the final days of the year. Gold's rally continues, approaching $4,500 per ounce, while the yen has strengthened against the dollar on speculation of the Bank of Japan's potential intervention in FX markets. For more analysis on today's altcoin and derivatives activity, see Crypto Markets Today. For a comprehensive list of this week's events, refer to CoinDesk's Crypto Week Ahead.