Gold-Backed Tokens Hit Record Highs as Crypto Market Faces Broad Pullback

I. Crypto Market Overview

Key Takeaways

Macro Environment

The Federal Reserve has kept rates steady at 3.5%-3.75%, supporting risk assets and market stability. India's Economic Survey projects 6.8-7.2% GDP growth for FY27, with inflation within target, boosting confidence in digital assets. The US Senate and UK are advancing crypto regulatory frameworks, signaling increased oversight and institutional adoption.

Crypto Market

The crypto market is broadly lower over the past 12 hours, with BTC down 2.3% to $87,856 and ETH down 3.0% to $2,927.7, pressured by ETF outflows and weak spot demand. Gold-backed tokens PAXG (+5.2%) and XAUT (+5.3%) hit new highs as investors seek safe havens, while Canton Network (CC) rose 5.5% on institutional DeFi strength. Most altcoins, including SOL (-3.1%), ARB (-3.2%), and FET (-4.5%), declined amid risk-off flows.

Today's Outlook

Key events today include the Eurozone Q4 2025 flash GDP release, Germany's preliminary CPI, and a joint CFTC and SEC crypto regulation discussion. These macro and regulatory updates may drive volatility and shape institutional sentiment across digital asset markets.

Fear and Greed Index

40.00% Annual Percentile

37 Neutral

Total Crypto Market Cap

$2.97T

2.44%

Total Market Trading Volume

$107.81B

6.44%

Altcoin Season Index

66.67%

Quarterly Percentile

31 / 100

Total Futures Market Open Interest

3.71B

0.63%

Futures

642.71B

0.02%

Perpetuals

II. Industry Updates

Macro-economic Policies

The Federal Reserve kept its benchmark interest rate steady at 3.5%-3.75% in its first 2026 meeting, maintaining monetary policy stability. This move supports risk asset valuations, including BTC and DeFi, by preserving dollar liquidity and reducing volatility expectations.

India's Economic Survey 2026 projects GDP growth at 6.8-7.2% for FY27, with inflation expected to remain within the 4% target range. Strong macro fundamentals and steady growth outlook may boost investor confidence in Indian crypto and digital asset markets.

The Bank of England announced plans to develop a systemic stablecoin framework in 2026, prioritizing tokenized collateral policies. This initiative is expected to enhance GBP-based stablecoin liquidity and support DeFi and tokenization activity in the UK market.

Copper prices surged to a record $14,125 per ton amid a weaker US dollar and strong demand expectations. Rising commodity prices can signal inflationary pressures, potentially impacting BTC's inflation hedge narrative and influencing crypto market flows.

The Indian rupee hit an all-time low, raising concerns about imported inflation. Currency depreciation may drive local demand for USD-pegged stablecoins and increase crypto adoption as a hedge against fiat volatility.

Cryptocurrency Regulatory Trends

The US Senate Agriculture Committee is voting today on amendments to a crypto market structure bill, aiming to clarify digital asset oversight and regulatory jurisdiction, which could impact compliance requirements and investor protection.

The Bank of England will prioritize developing a systemic stablecoin framework in 2026, proposing access to central bank deposits for issuers and setting strict asset backing and holding limits, likely increasing regulatory certainty for UK stablecoin projects.

Russia will implement a comprehensive crypto regulatory framework in July, allowing retail investor participation and establishing clear guidelines, which is expected to boost market legitimacy and attract institutional interest.

The UK House of Lords has launched an inquiry into stablecoin growth and regulation, focusing on the risks and opportunities for the UK economy, signaling increased scrutiny and potential new compliance standards for stablecoin issuers.

US SEC and CFTC Chairs have publicly advocated for clear and sensible crypto regulations, emphasizing the need for comprehensive frameworks to ensure market transparency and investor protection, which may support broader institutional adoption.

Canton (CC): Canton (CC) surged 4.4% in the past 24 hours, ranking among top gainers as institutional DeFi and RWA sectors showed resilience during a broad market pullback. No specific project event was disclosed, but sector rotation and increased attention to tokenization infrastructure are key drivers.

PAX Gold (PAXG): PAX Gold (PAXG) rose 5.2% in 24 hours, reaching a new all-time high of $5,622.81 with $1.11B trading volume. The rally is driven by record inflows into tokenized gold as investors seek safe-haven assets amid crypto market volatility.

Tether Gold (XAUT): Tether Gold (XAUT) gained 5.1% in 24 hours, hitting a record $5,597.10 and $966M in volume. XAUT leads the $4B gold-backed stablecoin market, fueled by surging gold demand and Tether's ongoing gold reserve expansion.

Smart Money Movements

A DeFi whale on Venus Protocol incurred a $1.09 million loss after a leveraged XVS position was liquidated during a 30% price drop, with 287,000 XVS sold to repay $930,000 of debt.

An ancient Ethereum whale sold 5,000 ETH for $14.7 million, transferring funds to Wintermute; the ETH was originally acquired at $9.35 and $86 per token nearly a decade ago.

Tether accumulated approximately 140 tons of physical gold, becoming a top 3 global gold buyer, and expanded its gold-backed stablecoin XAU₮, leveraging $15 billion in 2025 net profit.

A crypto whale deposited $1.6 million USDC into HyperLiquid and opened a 4x leveraged long position on copper, highlighting continued smart money interest in commodities trading.

A smart money address withdrew 4,000 ETH worth $11.98 million from Kraken after profiting $14.26 million from WBTC trades, but is currently facing a floating loss of $141,000.

Events to Watch

Jan 29 (Thu)

Eurozone Q4 2025 flash GDP data; Germany releases preliminary CPI; CFTC and SEC chairmen discuss crypto regulation; Helium Deployer Roundtable; Alchemy Pay hosts Discord AMA; Beefy DAO and Sushi governance votes end.

Jan 30 (Fri)

Federal Reserve policy decision and press conference; Japan releases Tokyo CPI for January.

Jan 31 (Sat)

China releases official Manufacturing and Non-Manufacturing PMI data.

Feb 2 (Mon)

US ISM Manufacturing PMI for January released; US Treasury announces quarterly borrowing plans.

Feb 4 (Wed)

S&P Global US Composite PMI and US ISM Services PMI released, both key indicators for USD and risk assets.

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