Large holders sold about $40 million in tokenized gold.
Peter Schiff argues that wars are typically financed through inflation.
Some traders believe profits from Gold could rotate into Bitcoin.
Gold’s record-breaking rally is facing fresh scrutiny after large tokenized gold holders sold tens of millions of dollars’ worth of tokenized bullion in recent days, raising questions about whether the precious metal may have reached a short-term peak.
The sales come even as prominent gold advocate Peter Schiff argued that geopolitical tensions and war-driven inflation could push prices higher.
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On March 9, blockchain analytics platform Lookonchain reported that two large investors sold approximately $40 million in tokenized gold assets over the past two days.
According to the data, wallet addresses 0x8C08 and 0xdfcA, believed to belong to the same investor, sold 5,250 Tether Gold worth about $26.9 million at roughly $5,125 per token — along with 560 Pax Gold valued at $2.9 million.
Gold whales are taking profits | Source: X (@lookonchain)
The transactions generated an estimated $5.32 million profit for the whale.
A second large holder reportedly sold 1,934 XAUT worth around $9.74 million, securing about $1.74 million in profit, according to Lookonchain.
The selling activity has sparked speculation among crypto traders that gold’s price has reached a top and that capital could rotate into riskier assets.
“Yes, gold has topped,” said one X user. “Capital should rotate towards risk. Bitcoin will shine this week.”
Another wrote: “Gold profit-taking is expected. The real question is where that capital goes next.”
Peter Schiff Says War Could Drive Gold Higher, Bitcoin Lower
Despite profit-taking, longtime gold advocate Peter Schiff argued that geopolitical tensions and inflationary pressures continue to support the precious metal.
Schiff has long linked rising gold prices to broader economic developments, warning that wars are historically financed through inflation rather than direct taxation.
“Politicians always pay for wars through inflation,” Schiff said.
Adding: “The last thing they want to do is make a war even more unpopular by asking the public to pay for it.”
According to Schiff, governments typically rely on monetary expansion to fund military conflicts, which erodes the purchasing power of fiat currencies and benefits hard assets like gold and silver.
Crossing these thresholds can undermine confidence in sovereign currencies and push investors toward alternative reserve assets such as gold, the institute said in a report.
The Institute also cited data from the World Gold Council and Bloomberg, which showed central banks have doubled the pace of gold purchases in recent years, accumulating roughly 80 metric tons per month.
Analysts Say Gold Rally May Continue — But Risks Remain
Gold’s rally has already been historic.
Last week, CCN analyst Victor Olanrewaju noted that the metal began 2026 trading near $4,300 per ounce and surged by more than $1,000 in less than two months, reaching around $5,300 amid escalating geopolitical tensions.
According to Olanrewaju, resistance levels sit near $5,337 and $5,400, while the lowest support is at $4,783 Fibonacci retracement level.
If tensions between Israel, the United States, and Iran escalate, analysts say gold could climb toward $5,601 or even set a new record high.
Will Gold Profits Rotate Into Bitcoin?
Historically, the relationship between Bitcoin and Gold has been complex and heavily dependent on investor risk appetite.
During periods of geopolitical stress, investors typically shift toward traditional safe-haven assets, such as gold.
For example, market analyses show that during major risk-off episodes, Gold usually attracts capital flows while Bitcoin often declines alongside other speculative assets.
Bitcoin has seen bursts of demand during the conflict, briefly rebounding above $73,000, though its performance has been more volatile as traders shift between risk-on and risk-off positioning.
Bitcoin briefly surged above $73,000 before dropping again | Source: CoinMarketCap
Once markets stabilize and investors resume seeking higher returns, some of that capital is likely to rotate into Bitcoin and other higher-beta assets.
However, many institutional investors remain opposed to viewing Bitcoin as a direct substitute for gold.
As well as Peter Schiff, hedge fund billionaire Ray Dalio recently argued that gold remains the primary crisis hedge.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
