As Bitcoin, Ethereum, and XRP face significant selling pressure, on-chain data reveals a clear capital rotation into tokenized gold products like Tether Gold (XAUT) and Paxos Gold (PAXG). This shift, driven by macroeconomic uncertainty including a recent partial U.S. government shutdown, highlights gold's resurgence as a perceived safe haven, even within the digital asset ecosystem.
Bitcoin's price recently dropped to approximately $72,884, its lowest level since November 2024, and has been trapped in a $70,000 to $80,000 range for five days. Ethereum showed weakness, falling to around $2,233, while XRP remained flat near $1.60. This downturn triggered substantial outflows from Bitcoin ETFs and widespread liquidations across the market.
The catalyst for this risk-off sentiment was a four-day partial U.S. government shutdown that began on January 31, 2026. The event created regulatory and economic uncertainty, prompting investors to pull capital from volatile crypto assets. The shutdown ended after President Trump signed a spending package, leading to a slight stabilization in crypto prices, with Bitcoin rebounding toward $76,000.
Concurrently, gold's spot price shattered the $5,000 per ounce ceiling, with silver rallying over 140% in the past year. This traditional commodity is now exhibiting "crypto-like volatility," with double-digit daily swings becoming common since late 2025. Major exchanges like Binance have responded by aggressively listing gold and silver perpetual contracts to capture the on-chain volume.
The primary beneficiary of this trend is the tokenized gold sector, a cornerstone of the booming Real-World Asset (RWA) market, which now boasts a Total Value Locked (TVL) approaching $52 billion. Tether Gold (XAUT), an ERC-20 and TRON-based token where each unit represents one fine troy ounce of physical gold stored in Swiss vaults, has seen its circulating supply surge to over 712,000 ounces. Its 24-hour trading volumes frequently top $1 billion.
On-chain analytics firm Lookonchain documented significant whale activity moving capital into these assets. One address (0x2788) withdrew 1,500 XAUT (worth $7.58 million) from OKX, while others moved millions into PAXG from Binance. This activity underscores that crypto-native investors are opting for the perceived stability of gold without leaving the blockchain, using stablecoins and even wrapped Bitcoin to purchase tokenized gold.
The trend presents a paradox: instead of crypto replacing gold as a digital hedge, capital is flowing from crypto into digital gold during periods of economic stress. Analysts note the BTC/gold RSI has hit its lowest level ever, suggesting a potential inflection point, but for now, tokenized gold remains the destination for risk-averse crypto capital.
