{"id":76065,"date":"2024-04-15T05:55:33","date_gmt":"2024-04-15T09:55:33","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=76065"},"modified":"2024-04-15T05:55:36","modified_gmt":"2024-04-15T09:55:36","slug":"paxg-surges-amid-middle-east-tensions","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/paxg-surges-amid-middle-east-tensions\/","title":{"rendered":"PAXG Surges Amid Middle East tensions"},"content":{"rendered":"\n

Over the weekend, Paxos' gold-backed digital asset surged to record highs amidst escalating tensions in the Middle East.<\/a><\/p>\n\n\n\n

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PAXG Surges Amid Middle East tensions<\/figcaption><\/figure>\n\n\n\n

Amid escalating tensions in the Middle East, the gold-backed digital asset from Paxos reached an all-time high over the weekend, prompting some to query the value of Bitcoin's value \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>as a hedge against geopolitics.\u00a0<\/p>\n\n\n\n

The PAXG gold-backed cryptocurrency token peaked at $2,855 on April 13, while Bitcoin prices plummeted $5,000 in a matter of hours, falling from over $67,500 to around $62,700, according to CoinGecko data. The daily decline for Bitcoin was 7.5%. <\/p>\n\n\n\n

\u201cBitcoin may be many things, but it is not a geopolitical hedge,\u201d Bob Elliott, former Bridgewater executive and co-founder and CEO of Unlimited Funds, wrote in an X post.\u00a0<\/p>\n\n\n\n

The weekend witnessed an escalation of geopolitical tensions in the Middle East due to an Iranian missile and drone assault on Israeli targets. <\/p>\n\n\n\n

The former research director of Bridgewater Associates further stated that this past weekend served as a solid empirical trial, as Bitcoin traded with a “virtually perfect negative correlation to PAXG over the last day.” <\/p>\n\n\n\n

He further stated, \u201cIf anything, it\u2019s becoming an even worse hedge over time,\u201d<\/p>\n\n\n\n

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BTC and PAXG prices. Source:\u00a0Bob Elliott<\/figcaption><\/figure>\n\n\n\n

At the time of writing, the PAXG token had retreated to its previous spot gold-linked price level of approximately $2,376 due to its inability to maintain momentum. <\/p>\n\n\n\n

Since the start of March, the asset has increased gradually but steadily, by 20%, in tandem with the underlying precious yellow metal's price, which peaked last week at $2,400 per ounce<\/strong>. <\/p>\n\n\n\n

Others, however, noted that the Paxos token is extremely illiquid, trading for only $36 million per day<\/strong> in contrast to the billions of dollars that significant high-cap crypto assets trade-in. <\/p>\n\n\n\n

“Checkmate,” an on-chain analyst for Glassnode,<\/use><\/svg><\/span><\/a> remarked that “indubitable market commentators” are those who “post about the price of an illiquid gold token trading higher today as a dunk on Bitcoin.”\u00a0<\/p>\n\n\n\n

In the meantime, Elliot noted that Bitcoin demonstrated comparable market behavior to gold in the aftermath of the October 7 Hamas attack on Israel, when it declined in value while the latter rose. <\/p>\n\n\n\n

Elliott further stated, \u201cThese correlations look to be getting more negative over time,\u201d citing the Russian invasion of Ukraine in February 2022.\u00a0<\/p>\n\n\n\n

He added, \u201cBTC largely traded randomly in a relatively tight range in the lead-up and following the invasion,\u201d Gold prices increased by 12 percent in February and March of that year.\u00a0<\/p>\n\n\n\n

In addition to referencing price movement during the onset of the Russia-Ukraine conflict, analyst Willy Woo stated that Bitcoin \u201crecovery happens within days.\u201d<\/p>\n\n\n\n

From a geopolitical standpoint, Elliott concluded that Bitcoin is not a store of value asset and that its wider application may more closely associate it with aggregate financial assets. <\/p>\n\n\n\n

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\u201cAlong the geopolitical dimension, its pretty conclusive BTC is not \u2018digital gold.\u2019\u201d\u00a0<\/p>\n<\/blockquote>\n<\/div>\n<\/div>\n\n\n\n

Bitcoin had already begun to recover from the weekend decline as of the time of writing, with early trading on April 15 seeing it surpass $65,800.<\/p>\n","protected":false},"excerpt":{"rendered":"

Over the weekend, Paxos’ gold-backed digital asset surged to record highs amidst escalating tensions in the Middle East. Amid escalating tensions in the Middle East, the gold-backed digital asset from Paxos reached an all-time high over the weekend, prompting some to query the value of Bitcoin’s value as a hedge against geopolitics.\u00a0 The PAXG gold-backed […]<\/p>\n","protected":false},"author":53,"featured_media":76073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83],"tags":[5371,19131,5699],"class_list":["post-76065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin-2","tag-paxg","tag-paxos-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/04\/llbw-2.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/76065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/53"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=76065"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/76065\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/76073"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=76065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=76065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=76065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}