Gold Rises as Caution Drives Crypto and Bitcoin Down: A Look Ahead

The Crypto Daybook Americas will take a temporary break starting Wednesday, resuming on January 5 with daily updates on overnight market movements and upcoming events. Wishing you a joyous 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, dropped to $87,500 after failing to sustain gains above $90,000. All 16 CoinDesk indexes have fallen over 24 hours, with the DeFi Select index down 4% and the metaverse index losing over 3%. Notably, HASH and RAIN are the only top-100 tokens to 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 decline occurred amidst a rally in gold and other precious metals, as well as a weakening dollar, highlighting a shift in risk attitude, also reflected in the global bond sell-off.' He expects a more pronounced decline in cryptocurrencies and increased risk aversion in stocks and emerging market currencies in the coming weeks. The US Bureau of Economic Analysis will release its preliminary Q3 GDP estimate at 8:30 a.m., with most economists forecasting a 3.2% annualized growth rate. A weaker-than-expected result could revive demand for BTC, but it remains to be seen if it will sustainably push prices above $90,000. Traditional markets show little change, with S&P 500 and Nasdaq futures indicating a lack of direction. Gold's rally continues, approaching $4,500 per ounce, while the yen strengthened against the dollar on speculation of potential Bank of Japan intervention in FX markets.