Gold-backed digital assets like PAXG and XAUT have remained steady amid a broader crypto market crash, but analysts warn that gold's historic rally may be nearing a correction phase.
While major cryptocurrencies like Bitcoin and Ether plunged during a $19 billion liquidation event, gold-backed digital assets such as PAXG and XAUT held firm, showing year-to-date gains of over 50%. Despite this resilience, the World Gold Council has warned that gold's rally may be reaching overbought levels, signaling a potential correction. The broader crypto market also experienced significant losses, with Bitcoin losing 8.5% and the overall market dropping 12.75%. The recovery path for crypto markets may be slow due to liquidity issues and external factors such as rising US-China trade tensions.