According to market analyst Michaël van de Poppe, gold’s recent 10% weekly drop is not a reason for panic but rather a sign of shifting market dynamics that could favor Bitcoin and altcoins in the weeks ahead.
After climbing 70% in a single year, gold’s volatility has naturally spiked. Van de Poppe notes that such extreme moves are “far outside normal volatility boundaries,” meaning traders should expect 10% swings in both directions.
Despite the correction, gold remains 30–40% above its 20-month moving average, suggesting it’s still far from its fair value.
Analyst's Perspective on Gold's Volatility
Gold comes down 10% in a single week.
Yes, get used to it. It went 70% in a single year. That's far out of the normal boundaries of volatility, so the volatility will be high.
It's going to go up 10% and down 10%.
Did it peak? I don't know. Probably close for now. The reason… pic.twitter.com/a7neZCOKaF
— Michaël van de Poppe (@CryptoMichNL) October 27, 2025
Historically, similar overextensions were seen during the 1970s bull cycle, when gold surged before entering a multi-year consolidation. Van de Poppe points out that even a 20% decline from current levels would keep gold within a healthy long-term uptrend.
Potential for Crypto Rotation
However, he emphasizes a more important takeaway: when gold starts to stall after a steep run, it often marks the beginning of a broader risk-on rotation. In the previous market cycle, this same setup preceded major rallies in altcoins and Bitcoin as investors shifted from defensive assets like gold into higher-yield opportunities.
With stock indices now at all-time highs and the FOMC meeting approaching, Van de Poppe views gold’s weakness as a constructive signal. “It’s a good sign going into FOMC that gold comes down,” he wrote. “It signals that markets are more open for risk-on appetites. It’s only a matter of time until Bitcoin hits a new all-time high.”
As the macro landscape evolves, the combination of easing inflation pressures, rising equity strength, and declining gold prices could set the stage for a renewed phase of crypto outperformance heading into the final months of 2025.