Gold Price Decline Could Trigger Crypto Surge, Says Analyst Michael van de Poppe

Michael de Poppe, Top Crypto analyst, identified the gold market as the key graph to watch this week. He warns that Gold’s short-term decreased trend could trigger a major change in the feeling of investors, potentially redirect the liquidity far from traditional “risk” assets such as gold and towards “risk” assets such as cryptocurrencies.

The sudden drop in gold indicates the potential decreased trend

According to the Daily Gold Spot Chart, Gold experienced a strong performance at the start of last week. On Monday, June 2, the price closed $ 3,381.50, winning 2.37% in one day. However, from Tuesday, June 3, the market began to show signs of weakness. At the end of Friday, June 6, gold fell to $ 3,309.998, marking a 2.21% drop in the fence on Monday. In particular, during the last two days of the week, the price of gold has dropped by 1.92%, intensifying the concerns of a short -term lower trend.

Van de Poppe highlighted this movement in a recent article, suggesting that the end of the week could confirm the start of a larger short -term decrease trend.

Investors can go from gold to crypto

The analyst stresses that continuous weakness of gold could lead investors to reassign capital to risky assets. In today’s market landscape, crypto is becoming more and more the favorite choice for such investments. A drop in gold prices often reflects reduced demand for lodging assets, encouraging investors to search for higher yields in more volatile sectors such as digital assets.

Possible catalyst behind the downward trend of Gold

Although the exact reason for the recent decline of Gold is not clear, analysts, notably Van de Poppe, suspect that he can be linked to speculation on leadership changes in the American federal reserve. The reports suggest that the White House, under President Donald Trump, could consider replacing the president of the Fed, Jerome Powell, by the former governor of the Fed, Kevin Warsh. If it is true, this evolution could have large -scale effects on the feeling of the market and monetary policy, indirectly influencing gold prices.

Gold price forecasts: Critical levels to monitor

Van de Poppe provides that if gold does not recover the level of $ 3,365 in the short term, the market could face a new drop of 4% to 10% in the coming weeks. Conversely, a strong rebound above this level could open the door to new peaks of all time for yellow metal.

• Read also:
• Will Bitcoin and Ethereum business discussions start today?
• ,,

The crypto market shows signs of strength

While the wider market of cryptocurrencies experienced a 4% earlier in the week, it organized a recovery by the end of the week. Friday, the market posted a gain of 2.49%. During the weekend, the total market capitalization of cryptography increased from 3.21 billions to 3.26 billions of dollars, reflecting an increase of 1.59%. This suggests that some investors can already reallocate gold funds from cryptocurrencies in response to market changes.

Conclusion: a central moment for gold and crypto

While uncertainty is looming on the direction of the federal reserve and the macroeconomic conditions remain volatile, the gold and cryptography markets are at a turning point. If gold has continued its downward trend, cryptocurrencies could benefit from an increase in entries. Investors and analysts will closely monitor pricing this week to assess whether this rotation is gaining momentum.

Faq