Investors Shift to Gold-Backed Crypto as Gold Hits $4,840, Bitcoin Slumps

Gold has surged to around $4,840, up 44% over the past 12 months, while Bitcoin has fallen roughly 40% from its October 2025 all-time high of $126,000 amid rising safe-haven demand. This divergence is driving investors toward gold-backed stablecoins like PAX Gold, which is up about 11% in 2026 with a market cap near $2.5 billion, offering 24/7 tradability and easier custody than physical bullion. The trend positions digital gold as a hybrid alternative, potentially boosting flows into precious metals and crypto liquidity.