The latest U.S. GDP report presented a strong economic signal—but for cryptocurrency markets, particularly alternative currencies, it may be bad news.
Data released on December 23 showed that the U.S. economy is growing faster than expected in the third quarter, reinforcing the idea that monetary conditions may remain tighter for longer. While Bitcoin remains relatively resilient, the broader cryptocurrency markets show warning signs.
U.S. GDP growth exceeds expectations
The U.S. economy expanded at an annual rate of 4.3% in the third quarter, significantly exceeding market expectations of 3.3% and above the previous reading of 3.8%.
Meanwhile, core PCE inflation rose to 2.9%, up from 2.6%, and remains firmly above the Fed's 2% target.
Real personal consumption expenditures also jumped by 3.5%, exceeding expectations of 2.7%.
In simple terms, Americans are still spending aggressively, and inflation pressures have not eased enough for policymakers to declare victory.
Why strong growth is a problem for cryptocurrencies
Stronger-than-expected growth reduces the urgent need to cut interest rates.
Coupled with recent consumer price index data and high inflation expectations from the University of Michigan survey, the GDP report strengthens the case for higher interest rates for a longer period in 2026.
For risk assets like cryptocurrencies, this is important because:
Higher interest rates increase returns on cash and bonds.
Liquidity becomes more selective.
Speculative assets struggle to attract new capital.
Historically, this environment pressures alternative currencies more than Bitcoin.
Bitcoin maintains a stronger position than alternative currencies
The market's reaction to the GDP release reverses this dynamic.
Bitcoin has remained relatively stable near $87,800, slightly down during the day but still holding key structural levels. Its market value remained above $1.75 trillion, showing limited panic selling.
However, alternative currencies have not performed well:
Ethereum fell by more than 3% that day.
Solana, Cardano, and Dogecoin stocks fell between 3% and 6%.
Mid and small-cap stocks experienced deeper losses with weaker recoveries.
This divergence highlights Bitcoin's role as a source of liquidity during periods of macro uncertainty.
The MACD of cryptocurrencies confirms the widening negative trend
Momentum indicators reinforce this concern.
According to CoinMarketCap's standard MACD indicator, 68% of tracked crypto assets are now in negative momentum. The market's average MACD is at -0.16, clearly in a bearish zone.
Most assets below a $10 billion market cap remain severely negative.
When momentum weakens across the market, capital tends to retreat towards less risky, more liquid assets—favoring Bitcoin again over alternative currencies.
Alternative currencies heavily depend on cheap liquidity, incoming retail flows, and risk appetite. Strong GDP growth with persistent inflation reduces all three.
As American consumers continue to spend but face higher costs, disposable income for speculative investment may decline in early 2026.
At the same time, institutions remain cautious amid Bank of Japan risks and global uncertainty in interest rates worldwide. This combination creates a difficult environment for alternative currencies to sustain the rally.
What this means for cryptocurrency markets ahead of 2026
The GDP report does not indicate an immediate collapse of cryptocurrencies. However, it increases the likelihood of continued consolidation or downward pressure, especially outside of Bitcoin.
If macro conditions remain unchanged:
Bitcoin may continue to spread rather than collapse.
Alternative currencies may face prolonged declines.
Market leadership could narrow further.
Overall, strong U.S. economic data is no longer optimistic—it serves as a warning for liquidity.
