in the early hours of Saturday cryptocurrency marketGold-linked cryptocurrencies showed resistance in the liquidation wave of approximately 700 billion dollars with the sharp decline in TL, but indicators that indicate that the rise can take a breather stand out. The sharp decline that hit the market Bitcoin 
$111,489.43, Ethereum 
$3,828.34 And altcoin’While TLs fell sharply, PAXG and XAUT remained close to flat as ounces of gold approached record levels. The recovery is expected to proceed gradually due to the cautious return of market makers, the weekend closure of the ETF market and the liquidity squeeze.
Gold-Indexed Cryptocurrencies Separated from the Market
While Bitcoin fell 8.5 percent in 24 hours during the liquidation frenzy, the basket reflecting the performance of the 20 largest cryptocurrencies lost 12.75 percent in value. In the same period, Paxos PAXGTether decreased by 0.23 percent to around $3,998. XAUTIt was traded at $4,010 with an increase of 0.2 percent. Since both cryptocurrencies are collateralized by physical gold reserves, pricing ounce of goldIt progressed in parallel with closing the week close to $4,018. Returns on gold ounces have exceeded 50 percent since the beginning of the year.
Traditional finance behind price resilience safe harbor behavior lies. As the reserve structure becomes more transparent and on-Blockchain issuance processes approach corporate standards, the value preservation structure becomes stronger during periods of harsh volatility. Still, cryptocurrency dynamics require close monitoring of technical details regarding custody and redemption procedures and issuer risk.
Rally Fatigue Signals
World Gold Council‘s Markets Monitor evaluation reports that the eight-week uninterrupted rise has moved into the overbought zone on daily, weekly and monthly scales. The report emphasizes that the price around $4,023, corresponding to 25 percent above the 40-week average, is the typical overbought threshold, and emphasizes that the possibility of consolidation or correction in the current phase increases. Although net long positions remain high, they have not yet reached extreme levels.
On the cryptocurrency market side, the bottom formation is likely to spread over time. The narrowing in liquidity channels, the closure of ETF transactions over the weekend, and the fact that market makers limited risk taking indicate a gradual recovery.
On the other hand, the re-escalation of the US-China trade tension may also increase the risk premium and delay the search for a bottom. In such a scenario, the decrease in the rally speed in gold-indexed assets may balance the volatility across cryptocurrencies to a limited extent.
