- Tokenized gold assets reached $3.04 billion as gold prices briefly passed $4,000 per ounce on Monday.
- Bitcoin hit a new record near $126,200, but gold outperformed in recent months based on the value ratio.
- Silver jumped to $48.50 while investors moved to safe assets during the US government shutdown.
Tokenized gold assets reached a new milestone on Monday. Their combined market capitalization climbed to $3.04 billion. This follows a 2.5% rise in just 24 hours, according to CoinGecko data. The move comes as physical gold briefly surpassed $4,000 per ounce for the first time.
PAX Gold and Tether Gold continue to lead the sector. Each trades closely in line with spot gold prices, staying just under the $4,000 mark. Kinesis Gold also saw gains, contributing to the sector’s rise. Trading volume surged to $640 million during the same period. This suggests increasing demand for on-chain gold exposure.
Gold and Silver Rally Amid U.S. Government Shutdown
The increase in tokenized gold was accompanied by an overall precious metals boom. Silver prices rose to $48.50, the highest point since 2011. The increase occurred on the sixth day of the current American government shutdown.
The closure has led to new fears regarding financial sustainability. Investors seem to be moving towards conventional safe-haven assets. Gold and silver are gaining as a result, both in physical and digital form.
Meanwhile, equity markets were robust. The S&P 500 hit a new all-time high of 6,753 points. This is a sign of resilience in asset classes regardless of political uncertainty.
Bitcoin Reaches Record Price, Lags Behind Gold in Ratio
Bitcoin also hit a new record on Monday. It hit a momentary high of $126,200 and went back to $123,200. However, the ratio of bitcoin to gold has declined. One bitcoin can be purchased with 31.6 ounces of gold. In December 2024, the ratio was over 40.
This movement shows that gold has been performing better than Bitcoin in the last few months. Bitcoin remains 30% higher than when the year started. However, gold’s recent gains have been stronger in relative terms.
Institutional interest in Bitcoin continues to rise. Last week, spot bitcoin ETFs saw $3.24 billion in net inflows. This was their second-highest total since launching.
Long-Term Outlook Links Bitcoin Growth to Gold’s Role
Some analysts believe Bitcoin could match or exceed gold’s store-of-value role. If it captured half that market, its price could reach $644,000. Others forecast even higher targets by 2050, assuming wider global adoption.
This shift might involve central banks. They are predicted to have Bitcoin in their reserves by 2030. This would mirror current gold strategies. In the meantime, exchange supply has fallen to six-year lows, putting a strain on coin supply.
Gold and Bitcoin are both still gaining interest. Traditional systems are under more scrutiny and, therefore, closely monitored by investors.
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