As Bitcoin continues to experience stagnation, a notable trend has emerged among crypto whales who are increasingly gravitating towards gold. Recent analyses indicate that demand for tokenized gold is rising sharply, a phenomenon not seen in over a decade. On January 27, blockchain analytics firm Lookonchain reported that three addresses withdrew approximately $14.33 million in tokenized gold from centralized exchanges, including Bybit, Gate, and MEXC.
Among these transactions, one wallet made a significant withdrawal of 1,959 XAUT, valued at $9.97 million, while another account pulled 559 XAUT, equating to around $2.83 million. The final address withdrew 194.4 XAUT, worth about $0.993 million, alongside 106.2 PAXG, valued at approximately $0.538 million. Although these assets represent tokenized claims tracking gold prices rather than physical gold delivery, this movement suggests a strategic shift towards safer assets via crypto settlement channels.
The timing of these transactions coincides with a notable divergence in asset performance. Gold has been trading above $5,000 an ounce following a surge that has attracted defensive capital, while Bitcoin has merely seen a slight increase of 0.28% since the year”s start, hovering around $88,125 as of the latest reports. This behavioral shift indicates that whales are mitigating risk; however, it also highlights a potential sequence: gold is prioritized during times of stress, with Bitcoin likely to follow if market conditions change from panic to opportunities for wealth preservation.
Tokenized gold presents a unique opportunity for investors within the crypto space, as it trades around the clock and can be settled similarly to any other digital asset. This seamless integration allows crypto-native investors to gain exposure to gold without leaving the ecosystem, avoiding traditional banking delays. Withdrawals of XAUT or PAXG from exchanges often signal longer-term custody intentions rather than quick trades.
The recent surge in gold”s price has further reinforced this behavior, with the precious metal gaining approximately 64% in 2025 and about 18% in early 2026, driven by safe-haven buying and central bank demand. Notably, Tether, a prominent stablecoin issuer, acquired around 27 metric tons of gold in late 2025, integrating it into the reserves backing its stablecoin offerings. This move reflects a growing trend of viewing gold as a viable internal hedge amidst economic uncertainty.
Meanwhile, Bitcoin has faced challenges characterized more by positioning and market flows rather than a fundamental shift in its adoption narrative. Recent data from Bitwise Europe indicated net outflows of $1.811 billion from global crypto exchange-traded products (ETPs), with $1.128 billion exiting Bitcoin products alone. These outflows are particularly concerning as they impact market sensitivity to incremental demand, leading to price pressures even if long-term confidence remains firm.
The Crypto Fear and Greed Index has also returned to a state of fear, following a brief period of optimism in January. Data indicates a “maximum pain” threshold for Bitcoin between $81,000 and $75,000, suggesting that forced selling often occurs within this range. This presents a cautionary tale for macro hedgers as they navigate liquidity challenges.
Importantly, the current demand for tokenized gold does not necessarily signify a complete abandonment of Bitcoin. Instead, it may represent a hedging strategy while investors await a catalyst for renewed interest in Bitcoin, particularly as ongoing ETF outflows continue to limit its upside potential.
The demand for gold has not occurred in isolation; it is supported by geopolitical uncertainties, ongoing central bank purchases, and discussions around reserve diversification. Recent reports indicate that gold has surpassed the US dollar as the largest global reserve asset, further solidifying its role as a non-fiat store of value.
As the markets continue to evolve, the relationship between gold and Bitcoin is becoming more formalized. Companies like Bitwise and Proficio Capital Partners are launching new ETFs that combine gold, other metals, and Bitcoin as alternatives to traditional fiat exposure. This strategic packaging may reinforce the observed trend: gold serves as a hedge during risk-off periods, while Bitcoin could regain its appeal when liquidity conditions improve.
As discussions around market rotation intensify, some analysts believe the next phase may favor Bitcoin. The argument hinges on relative value and liquidity dynamics, particularly as the BTC-to-gold ratio nears historically extreme levels. The current market cycle, which is approximately 14 months in duration, suggests that dislocations between Bitcoin and liquidity can persist before a potential reversal occurs. This scenario underscores the need for sustained ETF inflows to relieve the current flow drag and facilitate demand-driven price movements.
