Tensions in the Middle East ramped up over the weekend following an Iranian drone and missile attack, with the price of PAX Gold and Bitcoin reacting very differently in the aftermath.
The gold-backed digital asset from Paxos spiked to an all-time high over the weekend amid a backdrop of rising tensions in the Middle East, leading to some questioning Bitcoin’s (BTC) value as a geopolitical hedge.
The PAXG gold-backed crypto token hit $2,855 on April 13 as Bitcoin prices conversely tanked $5,000 in a matter of hours from over $67,500 to bottom out at around $62,700 in a 7.5% daily rout, according to data from CoinGecko.
“Bitcoin may be many things, but it is not a geopolitical hedge,” commented Bob Elliott, co-founder and CEO of Unlimited Funds and former executive of Bridgewater, in a post on X.
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Source: https://cointelegraph.com/news/paxos-gold-spiked-geopolitical-tension-bitcoin-hedge-questioned