Whale Spends $8.49 Million to Buy Gold Token at $4,357 Average Price

A large investor, often referred to as a whale, recently spent $8.49 million to purchase gold-backed token XAUt at an average price of $4,357. This move highlights continued interest in tangible assets among major market participants according to market analysis.

According to on-chain analytics firm EmberCN, this whale has been actively accumulating XAUt and PAXG since early October. The total investment now stands at $12.42 million across 2,371.4 XAUt and 559.7 PAXG tokens. The average purchase price for these gold tokens is now at $4,239.

The whale's position has appreciated as gold prices have risen. The accumulated holdings are currently showing an unrealized profit of $410,000. This follows a broader trend of increased demand for physical gold and its tokenized counterparts.

Why Did This Happen?

This whale has a history of large-scale transactions across multiple digital assets. Two months ago, it invested $30 million in Bitcoin. However, in early December, it also suffered a $13.73 million loss in Ethereum after executing a series of unsuccessful trades.

The shift to gold-backed tokens represents a strategic reallocation of capital. Gold tokens like XAUt and PAXG provide exposure to physical gold while operating within the crypto ecosystem. This diversification strategy helps mitigate risks associated with more volatile assets like ETH according to market reports.

How Did Markets React?

The whale's activity has drawn attention from on-chain analysts and market observers. Analyst Yu Jin noted the whale's latest purchase of 2,251 XAUt for $9.95 million at an average price of $4,420. This reinforces the trend of institutional-grade investors seeking tangible value within the crypto space.

Gold prices have continued to rise, with XAU/USD reaching above $4,350 amid geopolitical tensions. This trend is driven by a combination of inflation hedge demand and growing interest from central banks. Central banks added over 1,136 tonnes of gold in 2022, a record high.

The whale's investment is also aligned with broader market movements. Institutional investors are increasingly allocating capital to asset-backed tokens as a way to access traditional commodities through digital infrastructure. This trend is expected to continue with clearer regulatory frameworks emerging in 2026 according to financial analysts.

What Are Analysts Watching Next?

Market observers are monitoring whether this whale's activity will influence broader investor behavior. The whale's past actions have often served as a barometer for market sentiment. For instance, its previous $30 million BTC purchase was followed by a broader market upswing.

Analysts are also tracking how gold token prices respond to broader macroeconomic indicators. These include U.S. interest rate decisions and global geopolitical events. Gold's inverse correlation with the U.S. dollar and risk assets remains a key factor in price movements.

Some experts are also watching the impact of tokenized gold on traditional gold markets. If institutional investors continue to favor gold tokens over physical bullion or ETFs, it could shift the dynamics of gold trading and ownership.