Gold Shines as Bitcoin Consolidates Around $87,400 Amid Risk-Off Mood:

The crypto markets began to enter a cautious cycle as investors retreated to traditional safe havens, catapulting gold prices to historic highs while bitcoin prices consolidated at around $87,400.

Even amidst a weak United States dollar and better liquidity conditions, bitcoin retreated from strong levels to move below $90,000 again. This is a sign of indecision rather than panic selling ahead of important United States economic announcements on GDP statistics that can change perceptions about interest rates.

Gold-backed digital assets reacted to the trend in spot gold. Digital tokens such as XAUT and PAXG rose in tandem with the precious metal, further solidifying their position as digital representations of traditional safe-havens during macroscopic uncertainty.

Derivatives markets remain passive in their positioning. Volatility in both Bitcoin and ether is low, which indicates a lack of investor appetite for aggressive short-term market positioning. Derivatives open interest metrics point to selective participation and a lack of a risk-on mentality.

Institutional participation also seems less aggressive. The latest outflows from crypto investment products and lower futures open interest on regulated markets reflect a lack of investor conviction toward the end of the year. Zombie holiday markets are also adding to this sensitivity to macro headlines.

For bitcoin, the important psychological resistance is still at $90,000. While a strong recovery is likely to require renewed investment from institutions and/or a macro-economic catalyst, the market seems to be satisfied with sideways trading.

Ending the year in 2025, the relative strength of gold against the stabilization of bitcoin indicates the market’s process of tempering its enthusiasm for the future with prudence in the here and now.

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