While Bitcoin ether And other major Cryptocurrencies tumbled in a liquidation event of $ 19 billion on Friday, big gold -supported digital assets bowed the trend in the middle of the precious metal rally.
Tokens tied to physical gold, including Paxos’ Paxg and Tether’s Xaut, were among the few who had reason to keep their soil and even edge higher as wider markets sank.
Bitcoin lost 8.5% of its value in the last 24 -hour period, while the wider crypto market fell 12.75% measured by Coindesk 20 (CD20) index. PAXG, meanwhile, fell only 0.23% to $ 3,998, while Xaut has risen 0.2% to $ 4,010. A Troy ounce of gold, of which these tokens are backed up, closed near $ 4,018.
These coins are supported by reserves of precious metal and offer cryptoinvestors a refuge from volatility that reflects Gold’s historical role in traditional funding. Year to date, these tokens up more than 50% in the middle of Gold’s historic rally.
But while gold -supported 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 World Gold Councils Markets Monitor pushed the price to “overbought” territory. It is across daily, weekly and monthly charts that raise the likelihood of a short -term reversing in the short term.
“With the” typical “historically overbought extreme-25% over the 40-week average set not far over here at US $ 4,023/oz. We would then be wary of the rally for this phase of the Gold Bull trend, which is exhausted and opens the door to a consolidation/corrective phase,” the report reads. “Net long positioning remains elevated, but is not yet seen on an extreme.”
In the wider crypto market, the path to improvement can now be a slow grinding. Liquidity restrictions, closure of weekend ETF and a cautious return from market producers suggest a long -lasting bottom process.
With us – China – trading tensions that torch again, the floor may remain evasive.
