Crypto whales are rotating into tokenized gold as Bitcoin trades sideways, signaling short-term macro hedging rather than a full exit from crypto.

On-chain data shows large withdrawals of gold-backed tokens like XAUT and PAXG from exchanges, suggesting longer-term custody and defensive positioning. These tokens allow investors to gain gold exposure without leaving the crypto ecosystem, making them a fast, on-chain safe-haven trade.

The move comes as gold significantly outperforms Bitcoin. Gold has surged on strong safe-haven demand and central bank buying, while Bitcoin has struggled due largely to persistent ETF outflows and cautious institutional positioning. Derivatives markets also reflect a defensive tone, with increased downside hedging and weaker risk appetite.

Analysts argue this may be a sequencing trade rather than a structural shift. In periods of market stress, capital often moves first into gold for stability. If macro conditions later shift toward liquidity expansion and currency debasement concerns, flows could rotate back into Bitcoin, which is seen as offering higher upside in reflationary environments.

Some valuation models suggest Bitcoin is historically cheap relative to gold, with the BTC-to-gold ratio near extreme lows. However, a sustained Bitcoin rebound likely requires ETF flows to turn positive again and broader liquidity conditions to improve.