The Surprising Shift in Crypto Momentum
Throughout 2025, Ethereum and select altcoins have delivered strong performances, yet a full-scale altcoin season has struggled to materialize. Analysts suggest that the unexpected rally in gold is one of the main reasons why risk-taking capital is being diverted away from crypto markets. Investors appear to be adopting a cautious, risk-off strategy, allocating more money into precious metals while keeping crypto exposure limited.
Crypto analyst Michael van de Poppe has been vocal about this connection, noting that as long as gold continues to climb, investors remain hesitant to fully embrace altcoins. Yet, he emphasizes that the gold chart is showing signs of a local top, which could mark the turning point for altcoins.
Altcoin Season and Gold Correlation
Historically, gold has acted as a barometer of investor risk appetite. When gold rallies strongly, it signals risk aversion, drawing liquidity away from riskier assets like cryptocurrencies. Conversely, when gold stabilizes or retraces, investors often rotate back into high-risk/high-reward assets such as altcoins.
Van de Poppe explains that Ethereum has been the key driver of altcoin gains this year, but the broader market has been unable to take off. Gold’s strength, returning over 8% in September, highlights investors’ preference for safety. For comparison, Ethereum managed to outperform gold with 15% gains, but most altcoins have lagged behind.