The latest US GDP report delivered strong economic signals, but it may be bad news for the crypto market, especially altcoins.
Data released on Dec. 23 showed the U.S. economy grew faster than expected in the third quarter, reinforcing expectations that tight financial conditions could be prolonged. While Bitcoin has remained relatively resilient, there are flashing red flags in the broader crypto market.
US GDP growth exceeds expectations
The U.S. economy expanded at an annual rate of 4.3% in the third quarter, well above market expectations of 3.3% and above the previous estimate of 3.8%.
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At the same time, core PCE inflation rose from 2.6% to 2.9%, still above the Federal Reserve’s 2% target.
Also, real personal consumption expenditure increased by 3.5%, much higher than the expected 2.7%.
Simply put, Americans are still spending aggressively, and inflationary pressures have not cooled enough for policymakers to declare victory.
Why strong growth matters for cryptocurrencies
Stronger-than-expected growth reduces the urgency to cut interest rates.
Combined with recent CPI data and still-rising inflation expectations in a University of Michigan survey, the GDP report supports the possibility of a long-term rise in interest rates in 2026.
For risk assets such as cryptocurrencies, it is important for the following reasons:
Higher interest rates increase returns on cash and bonds.
Liquidity becomes more selective.
Speculative assets are having a hard time attracting new capital. Sponsored Sponsored
This environment has historically put more pressure on altcoins than Bitcoin.
Bitcoin has higher retention power than altcoins
The market reaction following the GDP announcement reflects this movement.
Bitcoin remains relatively stable around $87,800, declining slightly on the day but still maintaining a key structural level. The market capitalization remained above $1.75 trillion, and panic selling was limited.
However, altcoins significantly underperformed.
Ethereum fell more than 3% on the day.
Solana, Cardano, and Dogecoin fell between 3% and 6%.
Mid-cap and small-cap tokens saw losses widen and recovery slow. Sponsored Sponsored
This divergence highlights Bitcoin’s role as a liquidity sink amid macro uncertainty.
Cryptocurrency MACD confirms bearish range
Momentum indicators are raising concerns.
According to CoinMarketCap’s normalized MACD, 68% of tracked crypto assets are currently in negative momentum. The market’s average MACD is -0.16, firmly in bearish territory.
Most assets with market capitalizations below $10 billion remain significantly negative.
When overall market momentum weakens, funds tend to retreat into a few more liquid assets, again favoring Bitcoin over altcoins.
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Reasons for increased exposure of altcoins
Altcoins rely heavily on cheap liquidity, retail inflows, and risk-on sentiment. The combination of strong GDP growth and sustained inflation reduces all three.
Although U.S. consumers continue to spend, their disposable income for speculative investments could shrink in early 2026 as they face higher costs.
On the other hand, financial institutions remain cautious due to Bank of Japan risks and global interest rate uncertainty. This combination creates a difficult environment for altcoins to sustain their rise.
What this means for the crypto market heading into 2026
The GDP report does not signal an immediate crash in cryptocurrencies. However, it increases the likelihood of long-term price movements and downward pressure, especially outside of Bitcoin.
If the macro condition does not change:
Bitcoin may continue to range without collapsing.
Altcoins may face prolonged drawdowns.
Market leadership may become even narrower.
Overall, the strong US economic data is no longer bullish, but a liquidity warning.
