Gold and Bitcoin are again in the news, as Michael van de Poppe has put into the limelight a major macro trend. The recent decrease in gold, alongside its consolidation, which he says will give rise to altcoins and Bitcoin.
Van de Poppe reckons that the fall of such commodities commonly leads to a market shift into more risky assets, such as Bitcoin, Ethereum, and altcoins currently in their early stages of development.
Over the last 7 days, gold has decreased in value, dropping from $4,783 to $3,918 since the beginning of the week and testing key support levels at $3,900, which coincides with the EMA50 on the daily timeframe.
This downward trend might precondition a long-term phase of crypto market growth as investors are looking for greater profits.
Risk-on Momentum Builds Across Bitcoin and Ethereum As Gold Consolidates
As gold consolidates, the larger crypto market has risen. Bitcoin was at $105000 last week, and it has risen to a high of $115000 this week, which indicates 9.5% growth.
Similarly, Ethereum surged back and rose from 3,800 to 4,200. This indicated a new wave of strength in the big altcoins.
As Van de Poppe describes, the ETH/BTC pair has been relatively negatively correlated with gold in the past. This trend tends to recur, with some of the currencies of the altcoins recording a positive growth of up to 15% over the last week.
The continued outperformance of the leading digital assets underscores the perception that investors are shifting funds out of defensive investments and into the more risky, more rewarding crypto industry.
Altcoins Poised to Benefit From Extended Bull Market
Van de Poppe focuses on the point that the price behavior of gold is not a bearish indicator but a positive step that would help the whole ecosystem of cryptocurrencies.
He said the altcoins would perform best when gold is consolidating, and the market could have one or two years left in the current bull cycle.
In the event that gold does not soar and fails to make a sharp rebirth, the liquidity and risk appetite already in crypto would continue.
Traders believe that until gold is subdued and crypto continues to rise, the stage may be set for a long risk-on trade favoring digital assets.
As macro conditions shift to the crypto side and van de Poppe is so bullish that his optimism rings in the market, investors are keenly following as to whether this consolidation is indeed the beginning of the next big altcoin run.
