An Iranian drone and missile attack in the Middle East stirred the crypto universe and skyrocketed PAXG Price to $2.9K.
The ongoing tensions in the Middle East have stirred the cryptocurrency universe by spiking the price of PAXG to $2.9K on April 13, 2024. However, Bitcoin traded at the perfect opposite end to PAX Gold (PAXG), indicating a weak demand. The Middle East tensions affect the cryptocurrencies differently.
Middle East Tensions Raising Questions on Cryptocurrency
On Sunday, the gold-backed digital asset from Paxos (PAXG) showcased a record-breaking performance and crossed its all-time high amid the rising tensions in the Middle East.
According to CoinMarketCap data, On April 14, 2024, the PAGX token was trading at $2,906.75 with $55.63 Million in 24-hour volume. Bitcoin (BTC), on the other hand, dropped from $67,500 to $62,700 within a few hours.
Bob Elliott, co-founder and CEO of Unlimited Funds and former executive of Bridgewater, took on the social media platform X to highlight the same.
Bitcoin may be many things, but it is not a geopolitical hedge.
— Bob Elliott (@BobEUnlimited) April 14, 2024
This weekend was another good empirical test. BTC traded with a near perfect negative correlation over the last day to $PAXG, a gold backed token. If anything it's becoming an even worse hedge over time. pic.twitter.com/YH4NdJ9JMM
“Bitcoin may be many things, but it is not a geopolitical hedge,” Elliott added.
According to Elliot, the weekend was a good empirical test as PAXG traded upward, and BTC, on the other side, showcased a negative trend, indicating an even worse hedge over time.
The gold-backed digital asset, PAXG, rose as high as $2,906.75 on Sunday, trading at a premium of around 20% to the yellow metal’s per-ounce price of $2,342.90 at Friday’s New York close.
PAXG is considered the world’s second-largest tokenized gold coin, with a market cap of over $446 million. Tether Gold (XAUT) is the leader on the list, with a market cap of $581.9 million.
Furthermore, Gold has spiked by 8% in the past few weeks while the big cheese of the crypto market, BTC, dropped by over 10%.
Glassnode on-chain analyst “Checkmatey” responded to Elliot, stating that individuals comparing the price of an illiquid gold token with Bitcoin are unserious market commentators.
Bitcoin Vs. PAXG
At the time of writing, BTC is trading at $66,713.59, after a spike of 3.77% in the past day, and holds $1,313,022,386,745 in market cap. Also, BTC has a 24-hour volume of $43,079,376,412.
On the other side, PAX Gold holds a current price of $2,358.53, after a surge of 1.61% in the past 7 days. The gold-backed digital asset has a market cap of $430,698,894 and $49,159,698 in 24-hour volume.
PAXG recorded its all-time low of $1,387.98 on October 27, 2019, whereas the all-time high was recorded at $2,906.75 On April 14, 2024.
