Crypto Daybook Americas has announced a temporary hiatus starting Wednesday, with plans to return on January 5, providing regular updates on the industry. The publication extends its wishes for a joyful holiday season to its readers.
Currently, the mood in the cryptocurrency market is notably subdued ahead of a major economic report. The U.S. GDP data, expected later today, is anticipated to show that the world’s largest economy maintained a steady trajectory in the third quarter. Bitcoin, the leading cryptocurrency, recently fell to approximately $87,500 after struggling to maintain a position above $90,000 earlier in the week. This downturn extends to all 16 CoinDesk indexes, with the Decentralized Finance (DeFi) Select index declining by 4% and the metaverse index dropping more than 3%. Notably, HASH and RAIN are the only top-100 tokens by market capitalization that recorded gains exceeding 6% in the past 24 hours.
This overall bearish sentiment stands in contrast to a continued decline in the U.S. dollar index, which usually favors risk assets, including cryptocurrencies. The decline has seen the DXY drop below 98.00, nearing its lowest point since early October. Alex Kuptsikevich, the chief market analyst at FxPro, noted the unusual market behavior against the backdrop of a significant rally in gold and precious metals, highlighting a shift in market risk appetite and underscoring ongoing sell-offs in global bonds. He predicts a more pronounced drop in cryptocurrencies in the upcoming weeks, along with a potential spread of risk aversion to stock markets and currencies from emerging economies.
Later today, the U.S. Bureau of Economic Analysis will release its preliminary estimate for third-quarter GDP at 8:30 a.m. Economists largely predict an annualized growth rate of 3.2%, with some estimates reaching as high as 3.5%. While these figures suggest a slowdown from the previous quarter’s 3.8% growth, they remain above the average of 2.6% since late 2021. A weaker-than-expected GDP report could trigger renewed interest in Bitcoin, although it remains to be seen if it can sustain prices above the significant $90,000 mark.
In traditional markets, futures for the S&P 500 and Nasdaq are largely unchanged, reflecting a lack of clear direction as the year draws to a close. Historical trends suggest these indexes typically perform well during the final days of the calendar year.
Gold continues to experience upward momentum, nearing $4,500 per ounce, while the Japanese yen has strengthened against the dollar amid speculation that the Bank of Japan may intervene in foreign exchange markets to counter the currency’s recent declines.
Looking ahead, several key economic indicators will be released today, including U.S. Durable Goods Orders, PCE prices, and Consumer Confidence. Notable governance votes are also taking place within various decentralized autonomous organizations (DAOs), including Yearn, GMX, and Aave, on crucial financial and operational matters.
The crypto market is experiencing slight fluctuations in major assets, with Bitcoin down approximately 0.44% and Ethereum down about 0.2% in the past 24 hours. Market movements suggest that while the environment remains cautious, some sectors and tokens are showing resilience or even growth.
As the market enters the holiday season, investors and analysts alike will continue monitoring economic indicators and underlying trends that could shape the near future of cryptocurrencies and traditional equities.
