What To Expect From Crypto Market Ahead of US GDP Data Release
Highlights
- Crypto market weakens as traders await the US GDP and signals
- Extreme fear and rising liquidations signal heightened macro-driven volatility
- GDP and inflation data could shape Fed outlook and direction
The crypto market declined 1.7% in the past 24 hours, dropping to a total capitalization of $2.97 trillion. The correction follows the release of the most recent data on the US GDP, which will provide insight into the economic growth in the third quarter. The market volatility is increasing, and Bitcoin, Ethereum, and XRP continue to extend their losses.
Bitcoin (BTC) price fell 1.8% to $87,353, staying below the $88,000 mark. Ethereum price hovered below $3,000, while XRP slipped below $2.
Other major cryptocurrencies like ADA, BNB, and DOGE are consolidating near key support zones. This market chill is indicative of wider panic, with traders looking forward to macroeconomic information this week.
The crypto market sentiment is weak. The Crypto Fear & Greed Index fell to 24, which is the extreme fear. The liquidations rose 11% to 222 million within 24 hours, with increased sensitivity to news. In the meantime, the total crypto derivative open interest expanded by 1.1% to 129 billion.
Crypto Market Retreats as Traders Brace for US GDP Data
The macroeconomic calendar in this week is full of crypto market events. Monday was a day that Federal Reserve infused money into the financial system to the tune of $6.8 billion.
The most important US GDP data will be on Tuesday, and on Wednesday, jobless claims will be included. Thursday is a market holiday, and the Chinese data on M2 money supply come in on Friday.
GDP DATA IS SET TO BE RELEASED TODAY. 🚨
This is the first GDP report since the U.S. government shutdown, and multiple officials have said the data could have been negatively impacted by the shutdown itself.
It’s concerning if you look back at previous GDP release days, as… pic.twitter.com/JvJfdXrsvG
— Crypto Rover (@cryptorover) December 23, 2025
The US GDP will record annual growth of 3.2% in Q3 today. That is a little less than the previous 3.8 percent figure, but is nonetheless an indication of a robust rate of growth. According to analysts, this has the potential to affect the anticipation of the next move that will be made by the Federal Reserve.
Markets Focus on GDP Growth and Inflation Index
The US economy appears to be gaining momentum after contracting in Q1. A 3.2% growth rate would confirm steady recovery heading into year-end. The Bureau of Economic Analysis will also publish the GDP Price Index, an indicator of vital inflation, along with the GDP headline.
This index is used to measure inflation of all goods and services produced locally. It was 2.1% in Q2, compared to 3.8% in the first half of the year. This is a very important figure that the Federal Reserve keeps an eye on in policymaking. A weak value would affect subsequent rate determinations.
The GDPNow model of the Atlanta Fed indicates that the growth will be 3.5% in Q3, which is projected to be stronger than expected. But the index of the US Dollar has been weak before the release, indicating market reservations.
The US GDP data are modifying positions that are being adjusted by investors on how the data would alter the direction of monetary policy.
Since the crypto market is still susceptible to macro data, the current release may produce new volatility. Traders will observe how the prices respond and whether the prices continue lower or there is a relief rally.
Frequently Asked Questions (FAQs)
1. What is the expected US GDP growth rate for Q3?
2. Why is the GDP Price Index important for markets?
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