TLDR
- Whales are moving their investments from Bitcoin to tokenized gold amid rising demand for precious metals.
- Bitcoin’s price is struggling to gain momentum as large investors prefer gold-backed assets over digital currencies.
- The price of gold surged to $4,967 per ounce while silver climbed to $99.24, setting new all-time highs.
- Blockchain platform Lookonchain tracked whale activity, revealing purchases of millions in tokenized gold.
- Economist Peter Schiff criticized Bitcoin’s underperformance against gold, citing a 50% loss in value since 2021.
Bitcoin saw a dip today as on-chain data revealed that large investors, known as whales, are shifting their capital toward gold-backed assets. This move comes as traditional safe-haven assets such as gold and silver are experiencing record-breaking rallies, leaving the crypto market in a downtrend. The latest shift highlights investor preference for lower-volatility options amid current macroeconomic uncertainty.
Bitcoin Struggles as Gold Shines
Bitcoin’s price struggled to gain momentum, trading near $88,653, down about 1% on the day. This performance reflects investor caution as the digital asset market faces mounting uncertainty. On-chain data indicates that large investors are seeking safer havens, preferring gold over Bitcoin.
Whales are moving their capital into tokenized gold, a trend that has gained momentum recently. Blockchain tracking platform Lookonchain reported that a whale address deposited $1.53 million in USDC to purchase XAUT, a token backed by physical gold and issued by Tether. This transaction follows a previous purchase of 481.6 XAUT, valued at approximately $2.38 million.
Large Investors Flock to Tokenized Gold
The increase in gold prices is contributing to the shift in investor behavior. Recently, gold surged to $4,967 per ounce, while silver climbed to $99.24, setting all-time highs. As traditional assets experience growth, large investors are prioritizing stability in these assets over the more volatile crypto market.
The whale’s actions reflect the growing appeal of tokenized gold as a hedge against inflation and broader economic uncertainty. While Bitcoin remains a long-term investment for many, the current market conditions show a shift in sentiment. Investors are adjusting their strategies, looking for lower-risk alternatives like gold-backed assets.
Peter Schiff Criticizes Bitcoin’s Underperformance
Economist Peter Schiff took to social media to reiterate his criticism of Bitcoin. He pointed out that Bitcoin has underperformed compared to gold since 2021, with the digital asset losing over 50% of its value against gold. Schiff suggested that investors are missing out on better opportunities by holding onto Bitcoin while gold continues to rise.
In his posts, Schiff highlighted that gold and silver are now better positioned as stores of value amid rising global debt and currency pressures. He emphasized that Bitcoin’s failure to rally alongside gold during economic stress raises doubts about its role as a digital alternative to gold. Schiff’s comments add to the ongoing debate about Bitcoin’s long-term viability as a safe-haven asset.
The current market behavior, with whales opting for tokenized gold, shows that some large players are reconsidering Bitcoin as a reliable hedge.
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