Bitcoin, XRP, Ethereum Bleeding: Crypto Money Moves to Gold?

The idea that investors would eventually trade their gold and silver for Bitcoin hasn’t happened yet. In fact, the opposite is occurring. In the past year, instead of crypto replacing precious metals, we are seeing a trend where crypto money moves to gold whenever the economy gets shaky.

While Bitcoin, Ethereum, and XRP prices have dropped, investors have shifted their capital into gold. This is happening even though gold and silver have recently been more volatile than people are used to. It seems that when investors get nervous, they are now preferring the traditional safety of metals over crypto.

Will this trend change soon? Some still believe it will eventually shift.

The BTC/gold RSI hit the lowest level it EVER has been. If gold normies don't pivot to #bitcoin here they will miss on generational wealth and face a big roundtrip. pic.twitter.com/Miloq2PrM3

— M-log1 (@log1_053) February 4, 2026

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Selling Pressure Hits Bitcoin and Altcoins

Bitcoin price dropped to about $72,884 on February 3, its lowest price since November 2024. For the past five days, it has stayed stuck between $70,000 and $80,000. Ethereum also showed weakness, falling to the $2,233 range, while XRP stayed flat near $1.60.

On-chain data shows that large investors, or “whales,” are divided. One whale address borrowed $20 million in USDT to buy 8,806 ETH at an average price of $2,271. However, other large players were forced to sell their positions due to liquidations. This mixed activity has kept the market from making a real recovery.

After being dormant for 9 months, a whale has borrowed $20M $USDT to buy 8,806 $ETH at a price of $2,271 over the past 2 days.

Currently, the whale holds 21,094 ETH, valued at $47.53M.

Address: 0x5E90387025235d07576f80C76B3E57EC96547ec4 pic.twitter.com/Dql6iVyv0o

— Onchain Lens (@OnchainLens) February 4, 2026

Another U.S. Government Shutdown Triggers Risk-Off Flows

A major reason for this move away from crypto was the partial U.S. government shutdown that started on January 31. This event lasted about four days and affected multiple federal agencies, creating uncertainty that delayed economic data and regulatory actions.

Investors pulled capital from risk assets, including crypto, leading to substantial outflows from Bitcoin ETFs and widespread liquidations. The impasse contributed directly to the price declines in Bitcoin and major altcoins.

Yesterday, President Trump signed a spending package passed by the House, ending the partial shutdown. The deal funded most agencies through the fiscal year, with a short-term extension for the Department of Homeland Security.

Crypto prices stabilized somewhat following the news, with Bitcoin rebounding from its lows toward current levels around $76,000.

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When Crypto Money Moves to Gold Products

All this uncertainty is not helping at all. Crypto money moves to gold, pushing the metal’s price back over $5,000 per ounce on February 4. What is interesting is how this money is moving. Rather than just buying physical bars, many crypto investors are buying tokenized gold like XAUT and PAXG.

Data shows that multiple wallets spent millions in stablecoins and even “wrapped” Bitcoin to buy these gold-backed tokens. This shows that even people who prefer using the blockchain are currently choosing the stability of gold over the volatility of the crypto market.

For now, gold remains the preferred choice when the political and economic environment gets unpredictable.

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