Why Some Investors Are Buying Gold-Backed Cryptocurrency Instead of Bitcoin

Investors are shifting some ‘digital gold’ bets away from Bitcoin and into gold and gold-backed stablecoins, driving market divergence. Bitcoin has underperformed since October 2025 — about 40% below its $126,000 all-time high and down ~15% year-to-date — while physical gold has continued to rally (quoted at $4,840, up ~44% over 12 months). Gold-backed tokens such as Pax Gold have seen rising demand and price gains (Pax Gold and Tether Gold both up ~11% in 2026), with Pax Gold’s market cap approaching $2.5 billion and ranking among the top 35 crypto assets. The shift highlights investor preference for collateralized, tradable digital exposures to gold amid macro and geopolitical uncertainty.