An unidentified cryptocurrency whale that deployed a large amount of money into Ethereum (ETH) and suffered losses of tens of millions of dollars has recently shifted assets into gold, drawing market attention. With crypto market volatility rising, the move is seen as a signal that a shift from digital assets to traditional stores of value is gathering pace.

According to Lookonchain, an on-chain data analytics firm cited by blockchain outlet The Crypto Basic on Jan. 3, the whale address spent about $110 million to buy 31,005 ether from Nov. 3 to 7, 2025 at an average price of $3,581. After the crypto market plunged, it sold most of the holdings for $92.19 million, confirming a loss of about $18 million. With ether later recovering to around $3,020, some have said the sale was ultimately premature.

After selling ether, the whale made a new choice. It shifted its portfolio from cryptocurrencies to precious metals, buying large amounts of Tether's tokenised gold product, Tether Gold (XAUT). On-chain data shows the address, which starts with '0xFdC', used $14.58 million worth of USDT to buy 3,299 XAUT in multiple purchases, with an average purchase price of about $4,421.

The purchase is an additional investment following a small gold buy made 3 weeks earlier. The wallet now holds 3,386 XAUT worth about $14.92 million. The portfolio has also changed sharply. Assets that were once centred on Ethereum now consist of about $58 million in USDT, $18 million in USDC, with the remainder in XAUT, shifting to a more conservative allocation.

The move also coincides with a widening performance gap across asset markets in 2025. Markets have generally seen bitcoin and Ethereum outperform gold and silver in the later phase of a typical 4-year cycle, but this year was different. In 2025, bitcoin fell about 6 percent and Ethereum slid 11 percent, while gold surged 65 percent and silver jumped 147 percent, showing a clear contrast. Major stock indexes including the S&P 500, the Dow Jones and the Nasdaq 100 also posted higher returns than cryptocurrencies.

As a result, investors are showing signs of reassessing physical assets such as gold as a hedge against uncertainty and a store of value. Some analysis also suggests the long-term outlook for the crypto market has not been completely abandoned. Global asset manager VanEck projected that bitcoin could start rebounding from 2026 and could again lead the broader cryptocurrency market.

The Ethereum whale's 'return to gold' may be a short-term risk management strategy, but it is seen as a symbolic case showing which assets investors view as a safety valve in the current market environment.