$1.5B Flows Into Tokenized Gold — Is Bitcoin Losing the Safety Race?

Investors are increasingly turning to tokenized gold for safety, as blockchain-based PAXG supply hits $1.5B, up sharply from previous years. Meanwhile, Bitcoin struggles to keep pace, raising questions about capital rotation and market sentiment.

◼️ Tokenized Gold Demand Surges

• Paxos-issued PAXG supply expanded to $1.5B

• Offers 24/7 trading, fast settlement, and easy access compared to physical gold or ETFs

• Attractive during periods of uncertainty and market volatility

◼️ Bitcoin vs. Gold: Relative Weakness?

• Bitcoin-to-gold ratio has dropped to levels historically linked to market lows

• Analyst Michael Van de Poppe:

“Gold is getting overvalued, while Bitcoin is getting undervalued.”

• Bitcoin maxi Matthew Kratter emphasizes long-term advantages of BTC over gold for trade settlement

◼️ Market Takeaway

• Gold currently leads the “safety trade”

• BTC weakness may be relative rather than absolute, potentially signaling future rebounds

• Investors’ definition of safety is evolving in the digital age

Key Insight: Tokenized gold’s growth reflects a shift in risk appetite, but Bitcoin’s long-term narrative as digital gold remains intact.

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