The latest report on US GDP shows a strong economy, but for the cryptocurrency market, especially altcoins, this could be bad news.
Data released on December 23 shows that the US economy grew faster than expected in the third quarter. This leads many to believe that economic conditions may remain tighter for longer. While Bitcoin still shows resilience, the rest of the cryptocurrency market is showing warning signs.
US GDP growth exceeds expectations
The US economy grew at an annual rate of 4.3% in the third quarter, which is much higher than the market expectation of 3.3% and also more than the previous figure of 3.8%.
At the same time, core inflation according to PCE rose to 2.9%, from 2.6%. It thus remains above the Federal Reserve's target of 2%.
Even the real personal consumption expenditures rose by 3.5%, which is well above the expectation of 2.7%.
Simply put, Americans continue to spend a lot, and inflationary pressure has not decreased enough for policymakers to declare victory.
Why strong growth is a problem for crypto
Stronger growth than expected makes it less urgent to lower interest rates.
Along with the latest CPI figures and continued high inflation expectations according to the University of Michigan survey, the GDP report strengthens the case for higher interest rates for a longer period, even into 2026.
For risky assets like crypto, this is important because:
Higher interest rates provide better returns on money and bonds.
Liquidity becomes more limited.
Speculative assets find it harder to attract new capital.
This situation tends to pressure altcoins more than Bitcoin.
Bitcoin fares better than altcoins
The market reaction after the GDP figures reflects this development.
Bitcoin remained fairly stable near 87,800 USD, just slightly lower for the day, but held important levels. Its market value remained over 1.75 trillion USD, so the panic selling did not occur.
Altcoins, on the other hand, performed much worse:
Ethereum fell by more than 3% during the day.
Solana, Cardano, and Dogecoin fell between 3–6%.
Mid- and small-cap tokens dropped even more and recovered worse.
This difference highlights Bitcoin's role as a liquidity magnet in uncertain economic conditions.
Crypto MACD confirms broad decline
Momentum indicators reinforce the concerns.
According to CoinMarketCap's normalized MACD, 68% of tracked crypto assets now show negative momentum. The average market MACD is -0.16, which is clearly in the bearish zone.
Most assets under 10 billion USD in market value remain clearly negative.
When momentum weakens, capital tends to concentrate in fewer, more liquid assets. Therefore, Bitcoin often benefits more than altcoins in such times.
Altcoins are heavily dependent on cheap liquidity, inflow from small investors, and risk appetite. Strong GDP growth and continued inflation worsen all these factors.
When Americans continue to spend but face higher costs, money for risky investments may decrease in early 2026.
At the same time, institutions are cautious due to the risks with the Bank of Japan and uncertainty surrounding global interest rates. This makes it difficult for altcoins to sustain longer rallies.
What this means for the crypto markets heading into 2026
The GDP report does not mean that the crypto market will crash immediately. However, it increases the risk of prolonged consolidation or downward pressure, especially outside Bitcoin.
If the economic situation does not change:
Bitcoin may continue to move sideways and avoid larger declines.
Altcoins may face longer downturns.
Market leadership may become even narrower.
In summary, a strong American economy is no longer positive for the crypto market – it is rather a warning of a lack of liquidity.
