Gold Surges as Risk Aversion Impacts Bitcoin: A Crypto Market Update

The Crypto Daybook Americas is taking a temporary hiatus, resuming on January 5 with its regular updates on overnight market movements and upcoming events. Wishing all a joyous holiday season. By Omkar Godbole. The cryptocurrency market remains subdued ahead of the US GDP report, expected to show steady growth in the third quarter. Bitcoin, the largest cryptocurrency, dipped to $87,500 after failing to sustain gains above $90,000. All 16 CoinDesk indexes have declined over 24 hours, with the DeFi Select and metaverse indexes down 4% and 3%, respectively. HASH and RAIN are among the few top-100 tokens to have gained over 6% in the past day. The dollar index's continued decline, typically favorable for risk assets like cryptocurrencies, contrasts with the current weak market tone. According to Alex Kuptsikevich, FxPro's chief market analyst, the rally in gold and other precious metals, alongside the weakening dollar, highlights a shift towards risk aversion. This sentiment is expected to intensify in the coming weeks, potentially impacting cryptocurrencies, stocks, and currencies of developing nations. The US Bureau of Economic Analysis is set to release its preliminary estimate for the third-quarter GDP, with most economists forecasting a 3.2% annualized growth rate. A weaker-than-expected print could boost demand for Bitcoin, although its ability to sustain prices above $90,000 remains uncertain. Traditional markets show little change, with futures tied to the S&P 500 and Nasdaq indicating a lack of direction. Gold continues its upward trend, approaching $4,500 per ounce, while the yen has strengthened against the dollar on speculation of potential intervention by the Bank of Japan.