As Bitcoin experiences a period of stagnation, significant whale interest is turning towards tokenized gold. This shift in focus may reflect a strategic hedge against current macroeconomic conditions rather than a direct indictment of the cryptocurrency itself. On January 27, blockchain analytics firm Lookonchain reported that three wallets collectively withdrew approximately $14.33 million in tokenized gold from centralized exchanges such as Bybit, Gate, and MEXC.
Among these transactions, one wallet extracted 1,959 XAUT, valued at $9.97 million, while another removed 559 XAUT, worth around $2.83 million. The final wallet pulled 194.4 XAUT, valued at $0.993 million, along with 106.2 PAXG, approximately $0.538 million. Although these withdrawals represent tokenized assets that track gold prices rather than confirmed physical deliveries, they indicate a shift towards safe-haven positioning using cryptocurrency settlement methods.
The timing of these moves coincides with a notable divergence in the performance of hard assets. Spot gold has maintained prices above $5,000 per ounce, driven by an influx of defensive capital, while Bitcoin has seen minimal movement, currently trading at around $88,125, marking only a 0.28% increase since the year”s start. This situation suggests that whales might be de-risking their portfolios, opting for gold as a first line of defense during market stress, with a potential pivot back to Bitcoin should the macroeconomic landscape shift towards inflationary concerns.
Tokenized Gold as a Fast Hedge
The appeal of tokenized gold lies in its integration with the cryptocurrency ecosystem, allowing investors to purchase gold exposure on-chain without needing to exit the crypto space. This operational efficiency means that whales can manage their custody preferences while utilizing the same platforms for both Bitcoin and gold transactions. When large holders withdraw XAUT or PAXG from exchanges, it often signals a long-term custody strategy rather than a quick profit-taking maneuver.
Gold”s recent rally, which saw it gain approximately 64% in 2025 and about 18% year-to-date by late January 2026, is bolstered by safe-haven demand and central bank acquisitions. This trend also extends into crypto reserve management, exemplified by Tether”s recent purchase of approximately 27 metric tons of gold to bolster the reserves backing its stablecoin products. Such moves highlight the increasing normalization of gold as a viable hedge and settlement asset within the cryptocurrency domain.
Bitcoin”s Slowdown Linked to Market Flows
The current slowdown in Bitcoin“s performance appears to stem more from market flows than underlying conviction in the asset”s long-term value. A recent report by Bitwise Europe noted weekly net outflows totaling $1.811 billion from global crypto exchange-traded products (ETPs), with $1.128 billion specifically linked to Bitcoin products. This trend is particularly critical as it affects market sensitivity to incremental demand.
Recent data also reveals a fear-driven sentiment among investors, as reflected by the Crypto Fear and Greed Index, which has returned to a fear reading following a brief moment of optimism. Additionally, a stress channel for Bitcoin has been identified between $81,000 and $75,000, representing levels at which forced selling typically occurs, thus providing a framework for hedging during periods of reduced liquidity.
Phased Approach to the Distrust Trade
The recent uptick in gold demand is part of a broader narrative influenced by geopolitical tensions, policy uncertainties, and ongoing discussions regarding reserve diversification. Data indicates that gold has recently surpassed the US dollar as the leading global reserve asset, reinforcing the structural argument for holding non-fiat stores of value. In times of uncertainty, investors often gravitate towards gold due to its historical stability, whereas Bitcoin becomes more appealing during phases of liquidity restoration.
The relationship between gold and Bitcoin is increasingly being formalized in financial products, as evidenced by the new ETF launched by Bitwise and Proficio Capital Partners, which packages gold, metals, and Bitcoin as alternatives to traditional fiat exposure. This approach reinforces a sequential investment strategy, with gold serving as a hedge in risk-off conditions and Bitcoin poised to attract interest when liquidity appetite returns.
In conclusion, while the current whale movements towards tokenized gold may indicate a temporary retreat from Bitcoin, they also highlight a strategic positioning within the market, with potential for a future reallocation back to Bitcoin should market conditions improve. This dynamic demonstrates the evolving landscape of cryptocurrency investing, where traditional assets like gold and digital currencies like Bitcoin intersect in increasingly complex ways.
