Gold Compared to Altcoin: A More Profound Capital Shift Before the FOMC Meeting

Gold, often regarded as a safe-haven asset, continues to show impressive bullishness, in stark contrast to the recent difficulties in the crypto market, especially among major altcoins. As gold prices rise sharply ahead of the closely watched meeting of the U.S. Federal Open Market Committee (FOMC), crypto analysts are debating this divergence and its implications for Ethereum (ETH) and other alternative digital assets.

Analyst: The Recovery of Gold Attracts Attention from Altcoin Such an analyst, Michael van de Poppe, has stated that the continuous bullish trend of Gold is the main factor behind the latest decline in the altcoin market. The analyst believes that digital asset investors are currently focusing more on the strong performance of Gold. Currently, as traditional safe havens reach new highs, analysts like Van de Poppe are watching to see if any pullbacks in Gold prices could spur a recovery for Ethereum and other altcoins, possibly around the time of the upcoming FOMC meeting. Gold Rises to New Highs in Two Years The latest post by Van de Poppe on X features a chart of GOLD/USD showing that this solid mineral asset has maintained a stable bullish trend for over two years, starting from 2023. According to data from the shared chart, the gold price traded below $1,700 at the beginning of 2023 but steadily increased to over $3,500 by 2025. Recent Divergence: Gold Rises, Altcoins Fall Ahead of FOMC Meeting While the long-term performance of Gold is remarkable, Van de Poppe is focusing on its short-term price behavior compared to the crypto market. The analyst has emphasized the clear recovery of Gold as Ethereum and other altcoins are experiencing significant downward pressure. For example, Ethereum dropped about 3% on Tuesday morning despite very low trading volumes a few days prior. Other altcoins like XRP, BNB, and SOL also fell below their opening prices a few hours before the FOMC meeting. Contrarian View: Is the Weakness of Altcoins Due to Issues in the Crypto Market? However, not all analysts agree that the success of Gold is the direct cause of the decline in crypto market asset prices. Another perspective suggests that this decline is due to a decrease in demand within the crypto market itself. According to such an analyst, the altcoin space has not seen any exciting new developments for about four years, and speculative meme projects have drained liquidity from more established altcoins.