Overnight Crypto Monitoring: Gold and Bitcoin Amid Changing Risk Sentiment

While cryptocurrency analysts remain vigilant overnight, a clear pattern emerges in the major assets. Bitcoin is experiencing pressure while traditional assets like gold are soaring high. This shift reflects broader changes in market sentiment, where investors are moving from risk-on to risk-off strategies.

Bitcoin and Altcoins Drop While Gold Rises Overnight

The largest cryptocurrency by market cap has faced strong pressure recently. BTC fell to $78,600, showing a 5.55% decrease over 24 hours from a previous target of $87,500. Ethereum followed with an even larger decline of 8.82%, trading at $2,410.

The entire market landscape is red, with all 16 CoinDesk indices down in a single day. The DeFi Select index closed 4% lower, while metaverse tokens lost over 3%. This broad-based decline indicates systemic changes in risk appetite across the digital asset space.

In contrast, traditional safe-haven assets rallied strongly. Gold continued its ascent, approaching $4,516 per ounce. This development is mirrored by the decline of the US Dollar Index, which fell below 98.00 to its lowest point since early October. The yen also strengthened against the dollar as traders consider that the Bank of Japan may intervene in the forex market to strengthen their currency.

Risk Aversion Drives Market Shift Overnight

A clear pattern is becoming visible in financial markets: as cryptocurrencies decline, traditional de-risk assets are rising. Alex Kuptsikevich, chief market analyst at FxPro, shared his perspective on the situation. According to him, the rally in gold and other precious metals coincides with selling in the global bond market, all indicating a shift in risk sentiment.

“In the coming weeks, we can expect further declines in cryptocurrencies, as risk aversion spreads to stocks and emerging market currencies,” he said. This assessment reflects the broader difficulties faced by risk assets amid an uncertain economic outlook.

What to Watch in the Coming Hours: GDP Data and Market Catalysts

The U.S. Bureau of Economic Analysis plans to release the first estimate of gross domestic product for the third quarter. Most economists expect a 3.2% annual growth rate, with some forecasts reaching 3.5%. This figure is lower than the 3.8% seen in the third quarter but still comfortable compared to the long-term average of 2.6 since late 2021.

A lower-than-expected GDP report could support the cryptocurrency market, especially Bitcoin. However, market intelligence hinges on whether it can sustain momentum beyond the critical $90,000 level, which has acted as resistance in recent days. This technical barrier will be key in determining whether the next move is a “relief bounce” or a “renewed downtrend.”

In traditional equity markets, S&P 500 futures and Nasdaq futures are nearly unchanged in the pre-opening session, indicating a lack of clear direction. Historically, these indices tend to perform well toward the end of the year, often leading to a “Santa Claus rally” during the holiday season.

Technical Analysis and Token Events to Watch

The technical outlook for Solana offers a practical contrarian signal. SOL dipped just below several weeks of sideways consolidation but then recovered the next day. This rebound reflects classic Wyckoff action implying exhaustion of selling pressure—often the first signal of a potential trend reversal. However, true bullish confirmation will only come when the price breaks above the upper channel boundary.

Multiple token governance votes are scheduled in the coming days. Yearn DAO is voting on multisig signer rotation and a major treasury recovery plan. GMX DAO is voting on deploying on Solana with a $400,000 USDC allocation. Aave DAO is considering acquiring brand asset ownership from service providers like Aave Labs. Each of these votes has the potential to influence sentiment compared to their tokenomics.

In the altcoin space, a shock occurred in Aave, where the token dropped 18% over a week amid disputes over brand control and messaging. Although founder Stani Kulechov bought $12.6 million worth of AAVE tokens to support the price, governance disputes continue to weigh on sentiment.

Overnight Watch: Numbers and Structures

Bitcoin dominance remains steady at 59.58%, unchanged from the previous day. The Ethereum to Bitcoin ratio decreased by 0.24% to 0.03388. Network hash rate stands at 1,051 EH/s on the seven-day moving average, with a spot price of $37.27 per hash.

Bitcoin spot ETFs saw $142.2 million in daily net outflows, while total net inflows amount to $57.25 billion with over 1.31 million BTC held. Ethereum spot ETFs experienced $84.6 million in inflows, with a total of 6.09 million ETH held.

Continuing Overnight Monitoring

The crypto market landscape continues to revolve around one overarching theme: Bitcoin lacks a single narrative heading into 2025. Some investors see it as a “fear trade” asset, rising when the fear index increases, while others trust the “AI trade” narrative that supports tangible assets. The biggest challenge is identifying which category truly drives the market forward.

The capitulation of Bitcoin miners—evidenced by the steepest hashrate drop since April 2024 over the past 30 days—is a contrarian signal. According to VanEck, this pattern is historically associated more with market bottoms than tops, indicating potential renewed momentum in the coming weeks. The key is to monitor developments in technical levels and market sentiment overnight.