Risk Caution Drives Gold Higher, Impacts Bitcoin: Crypto Daybook Americas

The Crypto Daybook Americas will be taking a temporary break starting Wednesday, resuming on January 5 with our regular update on overnight market developments and the day's upcoming events. We wish you a joyous holiday season. By Omkar Godbole (All times are ET unless otherwise stated). The mood in the crypto market remains subdued ahead of the US GDP data report, which is expected to show that the world's largest economy remained stable in the third quarter. The price of Bitcoin, the largest cryptocurrency by market value, 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 by 4% and the metaverse index losing over 3%. HASH and RAIN are the only top-100 tokens by market capitalization to have seen gains of more than 6% in the last 24 hours. The overall downtrend 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 nearing its lowest level since early October. "It's worth noting that this occurred alongside a significant rally in gold and other precious metals, as well as the weakening dollar. This highlights a shift in the underlying attitude towards risk, also reflected in the sell-off of global bonds," said Alex Kuptsikevich, chief market analyst at FxPro, in an email. "In the coming weeks, we may see a more pronounced decline in cryptocurrencies, as well as a spread of risk aversion to stocks and currencies of developing countries," he 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 figure as high as 3.5%. These figures indicate a slowdown from the second quarter's 3.8% pace, yet still exceed the 2.6% average maintained since late 2021. A weaker-than-expected print could lead to increased demand for BTC. However, it will be interesting to see if this demand can sustainably drive prices above $90,000, a level that has acted as a resistance point recently. 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 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 informed. 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