The Tether Gold price has experienced a meteoric rise during the final week of January 2026, shattering price targets previously set by major banks like Goldman Sachs and UBS. According to reports from Lookonchain, several large-scale investors have withdrawn over $30 million in XAUT and PAXG assets from centralized exchanges, aiming to secure their capital against increasing market volatility.
This aggressive accumulation trend occurs as the precious metal hits fresh all-time highs, trading well above $5,500 per ounce. Consequently, analysts suggest that the movement of whales toward private cold storage indicates a clear long-term holding strategy, shifting away from short-term speculation to seek the protection offered by tokenized physical gold reserves.
Thus, XAUT’s market capitalization has climbed to an impressive $2.9 billion, reflecting an unprecedented demand for direct exposure to physical bullion. By integrating these assets into their portfolios, institutions are using this cryptocurrency as an efficient bridge between digital liquidity and the traditional safety provided by precious metal holdings.
Negative exchange flows confirm strong conviction among long-term investors
Data provided by Arkham Intelligence reveals that exchange flows for Tether Gold have remained net negative for seven consecutive days. This metric is crucial, as persistent withdrawals suggest that investors have no intention of selling in the near term, further stabilizing the Tether Gold price against expectations of further rallies in global financial markets.
Moreover, the backing infrastructure has been significantly strengthened, with the issuing company transporting over one ton of gold weekly to its high-security vaults. This physical supply, stored in Swiss nuclear-era bunkers, provides an additional layer of trust for large holders seeking to diversify their corporate reserves away from the conventional banking systems and geopolitical risks.
Could institutional demand drive the valuation toward the $6,000 mark later this year?
Furthermore, the lack of available supply on exchanges could act as a catalyst for another significant spike in the Tether Gold price. If forecasts from Bank of America and Jefferies materialize, investors who accumulated near the $5,000 level will see a substantial increase in their asset value, fueled by the physical scarcity of bullion in a high-inflation environment.
Ultimately, the success of gold-backed assets demonstrates a definitive convergence between traditional finance and blockchain technology. With exchange balances falling and “smart money” adoption on the rise, the XAUT market is positioning itself as the preferred safe haven, marking a new era for wealth preservation within the international cryptographic ecosystem.
