Gold recently surged past the $3,100 mark, prompting some analysts to speculate that the rally could signal the beginning of a significant market shift, rather than continued gains for the metal alone. Michael van de Poppe, a prominent market expert, suggests that Ethereum (ETH) could outperform Bitcoin (BTC) if Gold experiences a pullback in April.
While this prediction may seem bold, given Ethereum’s recent lagging price performance, it’s not without historical precedent. Typically, after a prolonged rally in a safe-haven asset like Gold, a price correction follows, which could shift investor interest back toward riskier assets such as Ethereum.
How a Gold Pullback Could Benefit Ethereum
In the event that demand for traditional safe-haven assets wanes, liquidity may flow back into riskier investments like Ethereum, potentially sparking a major crypto breakout. This capital rotation could also signal the onset of an “Altcoin Season,” a period where increased investor risk appetite drives attention to digital assets beyond Bitcoin.
While the current rally in Gold, which has been climbing steadily beyond $3,100, may continue to attract capital into the precious metal, some market analysts believe that Gold may be nearing the final stages of its current major rally cycle. This outlook is shaped by a combination of geopolitical and macroeconomic factors, including global uncertainty exacerbated by President Donald Trump’s position on international trade tariffs.
Impact of Potential Tariffs on Gold and Crypto Markets
Reports indicate that President Trump is considering imposing higher tariffs on several nations, with previous reciprocal tariffs set to take effect on April 2, also known as “Liberation Day.” These developments could influence market sentiment, particularly regarding Gold.
Institutions like Bank of America have revised their gold price targets upwards, forecasting $3,063 per ounce in 2025 and $3,350 per ounce in 2026. However, shifting fiscal policies and the potential escalation of tariffs could temper Gold’s rally, leading some traders to look for signs of exhaustion in its price movement.
Altcoins on the Horizon
If Gold does indeed face a pullback, this could create an opening for altcoins to regain momentum. Historically, Gold and cryptocurrencies have sometimes shown an inverse correlation, with investors shifting between risk-off (safe-haven) and risk-on (higher return) assets. Although Ethereum’s current technical downtrend against Bitcoin makes it difficult for ETH to regain strength, a reversal of this trend remains possible, particularly if broader market conditions change. Some analysts anticipate that such a shift, favoring altcoins, could begin as early as April.
In conclusion, while Gold’s recent performance may continue to dominate in the short term, potential pullbacks, combined with shifting investor sentiment, could set the stage for Ethereum and other altcoins to take center stage in the coming weeks.
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