Gold Surges as Investors Flock to Safe-Haven Assets, Leaving Bitcoin in the Dust

The Crypto Daybook Americas will be taking a temporary break starting Wednesday, with our regular morning updates resuming on January 5. We wish you a joyous holiday season. By Omkar Godbole (all times Eastern Time unless specified otherwise). The mood in the cryptocurrency market remains subdued as investors await the release of the US GDP report later today, which is expected to show the world's largest economy maintained its momentum in the third quarter. The price of Bitcoin, the largest digital currency by market capitalization, slipped 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 and the metaverse index experiencing losses of 4% and 3%, respectively. The only top-100 tokens by market capitalization to have gained more than 6% in the past 24 hours are HASH and RAIN. This overall downtrend is puzzling, given the ongoing decline in the dollar index, which typically bodes well for risk assets like cryptocurrencies. The DXY has dropped below 98.00 and is on the verge of reaching its lowest level since early October. According to Alex Kuptsikevich, chief market analyst at FxPro, 'The decline in cryptocurrencies is noteworthy, especially considering the significant rally in gold and other precious metals, as well as the weakening dollar. This highlights a shift in risk attitude, also reflected in the sell-off of global bonds.' Kuptsikevich added, 'In the coming weeks, we can expect a more pronounced decline in cryptocurrencies, as well as 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% for the period, with some expecting a growth rate as high as 3.5%. These figures indicate a slowdown from the second quarter's 3.8% pace but still surpass the 2.6% average growth rate maintained since late 2021. A weaker-than-expected GDP print could potentially reignite demand for Bitcoin, although it remains to be seen whether this demand will be sufficient to push prices above $90,000, a level that has acted as a ceiling recently. In traditional markets, futures tied to the S&P 500 and Nasdaq are relatively 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 foreign exchange markets to halt the currency's recent decline. For more analysis of today's activity in altcoins and derivatives, see Crypto Markets Today. To stay up-to-date on the latest events, see CoinDesk's 'Crypto Week Ahead' for a comprehensive list of token events, conferences, and market movements.