The gold Token holds steady amid the 19 billion USD crash of the crypto market, but the upward momentum has run out.

While Bitcoin and Ethereum plummeted sharply during the liquidation of over 19 billion USD on October 11, tokens backed by gold such as PAXG and XAUt remained almost unaffected, even slightly rising along with the historical increase of the precious metal.

According to the coin price data from CoinPhoton, the crypto market has sharply declined across the board, while PAXG only decreased slightly by 0.23% to 3,998 USD and XAUt increased by 0.2% to 4,010 USD. The spot gold price also closed near 4,018 USD/oz.

These tokens are directly backed by physical gold, serving as a “safe haven” for crypto investors – similar to the historical role of gold in traditional finance. Since the beginning of the year, the gold token group has increased by more than 50%, in line with the strong rise of gold.

However, the World Gold Council (WGC) warns that the upward trend may soon reach overbought levels. Gold prices have increased for 8 consecutive weeks, bringing prices into the “overbought” zone on daily, weekly, and monthly charts, raising the possibility of a short-term correction.

The WGC report states: “As the price approaches the historical peak region – about 25% above the 40-week average, equivalent to 4,023 USD/oz, the upward momentum of gold during this period may exhaust, leading to a correction or accumulation phase.”

Meanwhile, the crypto market in general may take a long time to recover due to tightened liquidity, the suspension of ETFs over the weekend, and the cautious sentiment of market makers. The escalating US-China trade tensions also prevent the price “floor” from being established.