- Gold’s momentum could stall, triggering a shift in investor appetite toward Altcoins.
- Analysts suggest Ethereum may start outperforming Bitcoin if Gold corrects.
- Crypto markets eye macroeconomic signals as traders reposition for Q2.
Gold smashed through the $3,100 mark recently; however, some analysts believe this rally could signal the start of a significant market shift, not just further gains for the metal itself. Market expert Michael van de Poppe suggests Ethereum (ETH) could outperform Bitcoin (BTC) if Gold pulls back sometime in April.
This prediction may sound ambitious, considering ETH’s recently lagging price momentum. Yet it is not entirely unfounded based on historical market patterns. When a major safe-haven asset like Gold rallies aggressively for an extended period, a price correction often follows eventually.
How Could a Gold Pullback Boost Ethereum?
In such a scenario, where demand for traditional hedges shrinks, investors may begin pushing liquidity back into riskier assets like Ethereum, fueling the next major crypto breakout.
Such a capital rotation could also mark the beginning of a broader “Altcoin Season,” as this would signify increasing investor risk appetite flowing towards various digital assets beyond Bitcoin.
While Gold’s relentless drive beyond $3,100 might attract more capital into the safe-haven asset in the immediate near-term, many market analysts speculate that gold might be entering the final leg of its current major rally cycle.
These concerns stem partly from a mix of complex geopolitical and macroeconomic factors. This includes current global uncertainty possibly magnified by President Donald Trump’s announced stance on international trade tariffs.
Related: The Great ETF Divide: Why Institutions Favor Bitcoin Over Ethereum Right Now
How Might Tariffs Impact Gold and Crypto?
The US president is reportedly considering levying higher tariffs on several nations soon. His administration’s earlier announced reciprocal tariffs were slated to begin taking effect today, April 2 (“Liberation Day”).
While institutions like Bank of America have raised gold targets ($3,063 per ounce (oz) in 2025 and $3,350/oz in 2026), shifting fiscal policies, potential tariffs escalations could temper the rally.
Due to these concerns about gold potentially nearing a peak, some traders now look for signs of exhaustion in its price momentum. This scenario, if it plays out, provides a potential opportunity for altcoins to regain market strength and attention.
Historically, Gold and cryptocurrency markets have sometimes exhibited an inverse correlation during certain periods. This often occurs during times of rapidly shifting investor sentiment between seeking safety (risk-off) and seeking higher returns (risk-on).
Related: Ethereum Q2 Outlook: Strong Seasonality Clashes with Weak On-Chain Data
While the current technical downtrend observed in the ETH/BTC trading pair makes it challenging for Ethereum to immediately find a bottom and recover relative strength against Bitcoin, a trend reversal remains a possibility, especially if market conditions shift, and analysts predict such a trend shift favoring altcoins could begin as early as April.
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