Bitcoin also felt the impact this week as large investors moved their funds into tokenized gold. Prices fell as whales quietly bought millions of dollars of gold-backed token XAUT, signaling a short-term move toward traditional hedging.
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Whales move to tokenized gold
According to on-chain trackers, an address transferred $1.53 million in USDC to Hyperliquid to acquire XAUT. The same wallet had previously made purchases worth approximately 481 XAUT, or approximately $2.38 million, according to the report.
Nearly $1.44 million in USDC is still held at this address, suggesting further purchases may follow. These movements were detected on public blockchains and flagged by analysts monitoring large-scale transfers.
This kind of action can be important. As big players shuffle their cash, smaller traders often take note and hedge their bets. While this change does not prove a long-term trend, it does indicate that some large holders prefer gold exposure to additional crypto risk, at least for now.
Whales are buying gold, not cryptocurrencies.
About 30 minutes ago, whale 0x6B99 deposited 1.53 million $USDC into Hyperliquid and bought $XAUT again.
He has already bought 481.6 $XAUT($2.38 million) and still has 1.44 million $USDC which he could use to buy more $XAUT. https://t.co/0uV2kNEiD0 pic.twitter.com/rYA09b1OEn
— Lookonchain (@lookonchain) January 23, 2026
Gold and silver hit new highs
Gold prices are soaring, with spot prices soaring to nearly $5,000 an ounce in global trading this week, according to reports. Silver also rose above $100 an ounce, with intraday gold printing settling around $4,988.
Traders are linking the rally to geopolitical tensions and the idea that interest rates could ease, prompting capital flows into metal-based stores of value.
The weaker dollar also provided a tailwind. The market turmoil points to increased demand as investors seek a more stable place to put their capital and concerns grow over global politics and policy choices.
Bitcoin price fluctuations and market mood
Bitcoin was trading around $88,653 at one point, down about 1% on the day and nearly 30% below its previous cycle high. That gap is huge. Market participants are questioning whether BTC will continue to be a go-to hedge during times of high stress. Some long-term holders remain confident. Others are watching liquidity and macro signals more closely.
New criticism has come to light from economist Peter Schiff, who claimed that Bitcoin has underperformed against gold since 2021, according to a report.
He highlighted the opportunity cost for investors holding BTC as metal prices rise to record prices. Schiff wrote on the social platform that precious metals are outperforming and that this weakness in Bitcoin is weakening its role as a store of value in the eyes of some.
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What this means for crypto investors
Such short-term rotations often reflect risk appetite rather than permanent shifts. Some funds and wealthy individuals seek less volatile assets as headlines get louder and the policy path becomes less clear.
Some still see Bitcoin as a long-term strategy associated with scarcity and network effects. The current situation is different. Metals are strong, tokenized gold is gaining traction, and the crypto market is reacting.
Featured images from Pexels, charts from TradingView
