These gold-backed tokens have been a refuge for crypto investors, with year-to-date gains of over 50%, mirroring gold’s historic rally.
Updated Oct 11, 2025, 1:05 p.m. Published Oct 11, 2025, 11:36 a.m.
While bitcoin BTC$112,383.08, ether ETH$3,833.91 and other major cryptocurrencies tumbled in a $19 billion liquidation event on Friday, major gold-backed digital assets bucked the trend amid the precious metal’s rally.
Tokens tied to physical gold, including Paxos’ PAXG and Tether’s XAUT, were among the few to hold their ground, and even edge higher, as broader markets sank.
Bitcoin lost 8.5% of its value in the last 24-hour period, while the broader crypto market plunged 12.75% as measured by the CoinDesk 20 (CD20 ) index. PAXG has meanwhile dropped just 0.23% to $3,998, while XAUt is up 0.2% to $4,010. A troy ounce of gold, which these tokens are backed by, closed near $4,018.
These coins are backed by reserves of the precious metal, offering crypto investors a refuge from volatility that mirrors gold’s historical role in traditional finance. Year-to-date, these tokens are up more than 50% amid gold’s historic rally.
But while gold-backed crypto weathered the crash, there are signs that their underlying asset may be approaching fatigue. Gold has risen for eight consecutive weeks, which according to the World Gold Council’s Markets Monitor pushed the price into “overbought” territory. That’s across daily, weekly and monthly charts, raising the likelihood of a near-term reversal.
“With the “typical” historical overbought extreme – 25% above the 40-week average – seen not far above here at US$4,023/oz. we would then be wary of the rally for this phase of the Gold bull trend getting exhausted, opening the door to a consolidation/corrective phase,” the report reads. “Net long positioning remains elevated but is not yet seen at an extreme.”
In the broader crypto market, the path to recovery may now be a slow grind. Liquidity constraints, weekend ETF closures and a cautious return by market makers suggest a protracted bottoming process.
With U.S.–China trade tensions flaring again, the floor might remain elusive.
More For You
Total Crypto Trading Volume Hits Yearly High of $9.72T
Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
What to know:
- Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
- Gate exchange emerged as major player with 98.9% volume surge to $746 billion, overtaking Bitget to become fourth-largest platform
- Open interest across centralized derivatives exchanges rose 4.92% to $187 billion
More For You
DOGE Suffers 50% Flash Crash Before Stabilizing Near $0.19
The move wiped out billions in nominal value, triggered cascading liquidations.
What to know:
- Dogecoin experienced a 50% flash crash, dropping from $0.22 to $0.11 before recovering to the $0.19–$0.20 range.
- The crash was triggered by the Trump administration’s tariff announcement, leading to a broader selloff in cryptocurrencies.
- Institutional demand and ETF flows helped stabilize Dogecoin, with whales re-accumulating and exchange outflows reaching $23 million.
