Gold prices recently surged to record levels, sparking optimism among investors in digital tokens backed by the precious metal. XAUT, the largest gold-backed token by market value, reached an unprecedented high of $4,425, while PAXG and KAU also recorded gains. This rally elevated the total market valuation of gold-backed tokens to approximately $4.38 billion.
Timothy Misir, head of research at BRN, highlighted that the current market behavior signals investors’ preference for hedging against macroeconomic uncertainties rather than aggressively pursuing high-risk investments. This trend, he noted, continues to suppress enthusiasm within the broader cryptocurrency market, despite improvements in liquidity conditions.
In parallel, Bitcoin, often dubbed “digital gold,” saw its price rise to $89,800, coinciding with a decline in the dollar index and a boost in technology stocks that propelled Asian equity markets. Key players in the tech sector, including Taiwan Semiconductor Manufacturing and Samsung Electronics, experienced notable gains, alleviating concerns regarding a potential AI bubble. Futures contracts linked to the S&P 500 also showed an uptick of approximately 0.3%, indicative of a potentially positive opening for U.S. markets.
While the price increases in both gold and Bitcoin are encouraging, analysts suggest that a sustained recovery hinges on renewed interest from institutional investors—a sector that appears to have cooled recently. Data from CoinShares reported a net outflow of $952 million from digital asset investment products listed globally, marking the first decline in four weeks.
The futures market presents a mixed outlook, with Bitcoin (BTC), Ethereum (ETH), HYPE, and BNB seeing slight increases in open interest within 24 hours. However, major cryptocurrencies like BCH, SHIB, WLFI, and TON are experiencing capital outflows, with BTC longs financed through borrowed funds on Bitfinex rising—a trend typically seen in bear markets. BTC’s 30-day implied volatility holds steady at around 45%, indicating subdued trading as the year progresses, while Ether’s volatility has dropped to 70%, marking the lowest level since early October 2023.
On the CME, open interest in BTC futures fell below 120,000 BTC for the first time since early 2024, signaling a reduction in institutional engagement. Perpetual markets for certain altcoins indicated negative funding rates, suggesting a preference for short positions, although the funding rates for major cryptocurrencies remain marginally positive. Deribit’s block flows exhibited mixed activity, with BTC call and put spreads emerging concurrently, while ETH traders seemed to favor calendar spreads. Notably, BTC and ETH puts continue to command a premium over calls, although the put bias has softened slightly since last Friday.
In governance news, Curve DAO recently voted against a proposal to allocate 17.45 million CRV tokens—valued at approximately $6.3 million—to Swiss Stake AG, a firm led by Curve’s founder Michael Egorov, aimed at supporting core development for the decentralized exchange. Despite the CRV token rising by around 4% in the last day, the proposal was rejected with 54.46% of votes against it and 45.54% in favor.
The voting opposition was largely driven by wallets associated with Yearn Finance and Convex Finance, which collectively accounted for nearly 90% of the dissenting votes. Concerns were raised about the transparency of prior spending, with some DAO members insisting on a clear, itemized report of expenses before authorizing any new funding. This call for accountability reflects a broader demand within decentralized finance for transparency and community engagement in decision-making processes.
