Gold, often viewed as a safe-haven asset, continues its impressive price climb, a sharp contrast to recent struggles in the cryptocurrency market, particularly among major altcoins.
As Gold pushes higher ahead of a closely watched U.S. Federal Open Market Committee (FOMC) meeting, crypto analysts are debating this divergence and what it means for Ethereum (ETH) and other alternative digital assets.
Gold continues to peak pre-FOMC.
That’s why $ETH and the #Altcoins continue to go down. pic.twitter.com/pVay3maPCi
— Michaël van de Poppe (@CryptoMichNL) May 6, 2025
Analyst: Gold Rally Drawing Focus from Altcoins
One such analyst, Michael van de Poppe, submitted that Gold’s sustained rally is a key factor behind the latest price decline across the altcoin market. The analyst believes digital asset investors are currently focusing more on Gold’s strong performance.
Now, with the traditional safe haven hitting new highs, analysts like Van de Poppe are watching to see if any pullback in Gold’s price could spark a recovery for Ethereum and other altcoins, possibly around the time of the upcoming FOMC meeting.
Gold’s Two-Year Climb to New Highs
Van de Poppe’s latest post on X featured a GOLD/USD chart showing how the solid mineral asset maintained a steady uptrend for over two years, beginning in 2023.
According to data from the shared chart, Gold traded below $1,700 at the beginning of 2023 but rallied steadily to reach over $3,500 in 2025.
Recent Divergence: Gold Up, Altcoins Down Before FOMC
While Gold’s long-term performance is notable, Van de Poppe focused on its short-term price behavior compared to the crypto market. The analyst highlighted a clear upward rebound for Gold when Ethereum and other altcoins were experiencing significant bearish pressure.
For instance, Ethereum declined by about 3% on Tuesday morning despite trading minimal volume a few days before. Other altcoins like XRP, BNB, and SOL also slipped below their opening prices hours before the FOMC meeting.
Alternate View: Altcoin Weakness Due to Market’s Own Issues?
However, not all analysts agree that Gold’s success is directly causing the slump in crypto assets.
An alternative view suggests the decline is because of a slump in demand within the crypto market itself. According to one such analyst, the altcoin space hasn’t seen compelling new developments in roughly four years, and that speculative meme projects drained liquidity from more established altcoins.
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