The cryptocurrency market shows signs of a correction phase, which some analysts suggest will lead to changes in its development. Crypto analyst Michaël van de Poppe points out that market prices corrected after gold started moving upward.
Gold’s new market direction is expected to influence the overall market, leading to changes in altcoins’ performance. Market experts anticipate new capital inflows into altcoins throughout this correction period. According to Van de Poppe, the market movement will benefit altcoins if this trend continues.
A straightforward correction on the markets as Gold has bounced upwards.
Generally, the trend has shifted on Gold and the trend has shifted on #Altcoins.
The moment this continues to fall, I assume we’ll see more strength coming in to the #Altcoin markets. pic.twitter.com/up2z0CHDTE
— Michaël van de Poppe (@CryptoMichNL) April 24, 2025
Gold’s Market Shift and Impact on Altcoins
Gold prices recently surged to record highs, driven by concerns over the U.S. economy and the strengthening of safe-haven assets. Rising gold prices have influenced investors’ attitudes toward markets while attracting numerous investors who hope to benefit from market changes.
Traditional financial markets show changing investor sentiment when gold prices increase. The current performance of the gold market fosters a risk-averse environment, prompting investors to explore alternative assets, especially altcoins. The gold trend reversal reshapes market dynamics, especially with Bitcoin and altcoins.
According to Michaël van de Poppe, the ongoing gold price rise shows clear signs of transforming overall market dynamics, resulting in increased capital flowing into altcoins. A sustained market correction might strengthen altcoins as they begin a new period of expansion throughout the altcoin market.
After a 3% drop on Wednesday, Gold prices recovered by 1.4% on Thursday. The metal’s price increased to $3,332.89 per ounce, as investors bought it at reduced prices following a weakening dollar. Gold reached its all-time high at $3,500.05 before President Trump eased stances about China and the Federal Reserve, causing a price drop.
Divergence Signals Point to Altcoin Recovery
Several divergence signals in Bitcoin dominance and altcoin behavior have led experts to speculate on a recovery phase for altcoins. Jamie Coutts, Chief Crypto Analyst at Realvision, highlighted a reduction in the number of altcoins hitting new 365-day lows, despite a drop in overall altcoin market capitalization. This divergence implies a change in market sentiment, with panic selling subsiding, and altcoin buying interest is beginning to rise.
The bearish divergence in Bitcoin dominance is another sign indicating increased potential for altcoin strength. The Relative Strength Index (RSI) shows a bearish trend as Bitcoin’s market share reaches new peaks, which indicates Bitcoin might lose some dominance in the market shortly.
Source: MerlijnTrader
The decline in Bitcoin’s market share suggests that alternative cryptocurrencies may achieve better price performance. According to analysts, an “altcoin season” is expected to occur with this market setup.
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