Cryptocurrency whales are increasingly turning to gold as a safe-haven asset, with some investors withdrawing millions of dollars in tokenized gold from centralized exchanges. According to blockchain expert Lookonchain, three addresses collectively withdrew approximately $14.33 million in tokenized gold from exchanges such as Bybit, Gate, and MEXC on January 27.
The company reported that one wallet withdrew 1,959 XAUT worth $9.97 million and another withdrew 559 XAUT worth around $2.83 million. The latest wallet removed 194.4 XAUT worth $0.993 million and 106.2 PAXG worth about $0.538 million. While these assets are tokenized claims tracking the price of gold rather than physical delivery, the flow shows safe-haven positioning being expressed through crypto settlement rails.
Gold Demand Breaks into the Crypto Whale Market
The timing of these purchases coincides with a strong divergence in real assets. Spot gold has held above $5,000 an ounce after a rise that has attracted defensive capital. On the other hand, Bitcoin has slowed down and is moving in a narrow band, even as the broader “trade of distrust” persists. According to data from CryptoSlate, the price of Bitcoin has increased a meager 0.28% since the beginning of the year and was around $88,125 at press time.
Demand for gold can occur in many places, but demand for tokenized gold is important because it is expressed in cryptoassets in instruments that are traded 24/7 and transacted like any other token. For crypto-native investors, that’s the appeal. You don’t have to leave the ecosystem, transfer cash and wait. They can purchase gold exposures on-chain and move them using familiar custody patterns, often on the same rails they use for Bitcoin.
Tokenized Gold as a Hedge for Cryptocurrencies
For this reason, exchange withdrawals also have informational significance. When large holders withdraw XAUT or PAXG from venues, it often signals intent and duration of custody rather than a quick scalp. In particular, the rally in gold prices has reinforced this behavior. Spot gold gained about 64% in 2025 and about 18% year to date through the end of January 2026, driven by safe-haven buying and central bank demand.
The overlap with crypto is also evident in reserve management. Stablecoin issuer Tether purchased approximately 27 tons of gold in the fourth quarter of 2025 as part of the reserves supporting its stablecoin products. For a market that often talks about “confidence minimization,” it is notable for the largest stablecoin issuer to add metal to the balance sheet. It normalizes gold as an internal hedging and settlement asset during declines, especially when volatility increases and traders still want to stay within the crypto rails.
Bitcoin’s Stall is Driven by Flows
Bitcoin’s slowdown appeared to be more of a positioning and flow issue than a thesis issue. In its weekly note on January 26, Bitwise Europe reported weekly net outflows of $1.811 billion from global crypto ETPs, including $1.128 billion from Bitcoin products. Notably, US-listed Bitcoin ETFs saw net outflows of $1.324 billion over the same period.
These withdrawals are important because they hit the market where it is most vulnerable: additional demand. In a flow-driven market, the price can fall even if longer-term conviction remains intact, especially if institutions stop adding risk and intermediaries withdraw. Derivatives pricing from the same data set points in the same direction. Bitwise saw a three-month basis of about 4.8% and an increase in options tilt toward downside protection, a setup more consistent with risk management than crowded long positions.
The Trade of Mistrust Can Proceed in Phases
What is noteworthy is that the demand for gold did not occur in isolation. This was supported by geopolitical and policy uncertainty, continued central bank purchases and ongoing debates over reserve diversification. Data from Barchart shows that the precious metal has replaced the US dollar as the largest global reserve asset. This shift is consistent with the slow, structural argument for holding non-fiat stores of value.
For some investors, this basket includes both gold bullion and Bitcoin, but not necessarily at the same time and not for the same reason. During a period of fear, preference often shifts to the asset with the longest history and lower volatility (gold). During a phase of devaluation or reflation, the preference can shift towards convexity (the ability to move faster as liquidity returns), and this is where Bitcoin’s narrative often gains strength.
Why Some Models Say the Next Leg Could Favor BTC
The “return to BTC” argument is based on relative value and liquidity, rather than the idea that Bitcoin will suddenly behave like a traditional safe-haven asset. Bitwise Europe has unveiled a framework that compares the BTC to gold ratio with measures of the global money supply. The company noted that the BTC-to-gold ratio compared to the global money supply is close to an extreme deviation of minus 2 standard deviations, a condition it compared to 2015.
Matt Hougan, CIO of Bitwise, suggests that this setup is based on a common macro thesis, which is currently expressed first through gold. Hougan argued that the rise in gold prices suggests that “years of money printing, debt and devaluation are catching up with fiat currencies,” prompting investors to look for asset formats that are not at the “mercy of others.” So as gold takes over the immediate security trade, Hougan noted that BTC’s “self-custody” and “trustless” architecture is becoming “increasingly valuable” as trust in centralized institutions declines.
Read more about the intersection of gold and cryptocurrency markets at https://cryptoslate.com/gold-demand-breaks-into-the-crypto-whale-market-as-it-hits-a-rare-extreme-last-seen-over-a-decade-ago/
