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PAXG Reaches All-Time High Amid Geopolitical Tensions
PAXG reached an all-time high of $2,855 on April 13 amid the ongoing conflict in the Middle East following the missile and drone attack.
Bitcoin’s Value as a Geopolitical Hedge Questioned
PAXG’s price performance over the weekend has led to questions about Bitcoin’s value as a geopolitical hedge. While the PAXG token climbed to its all-time highs, Bitcoin’s price plummeted from $67,140 to a bottom of around $62,000, according to CoinMarketCap.
Negative Correlation Between Bitcoin and PAXG
The Bridgewater Associates research indicated that Bitcoin’s trading volume had a “near-perfect negative correlation over the last day to PAXG.” “If anything, it’s becoming an even worse hedge over time,” the research said about Bitcoin.
PAXG Price Retraction
The PAXG token couldn’t sustain its momentum, retracting back to $2,363 at the time of writing. The PAXG price has seen a slow gain since the beginning of March, peaking at $2,400 per ounce as of last week due to a 20% rise in gold prices.
Bitcoin’s Reaction to Global Conflicts
Previous global conflicts that affected Bitcoin’s price include instances like the Hamas attack on Israel and Russia’s Ukraine invasion, showcasing Bitcoin’s price fluctuations in response to geopolitical events.
Bitcoin’s Role as a Store of Value
Bitcoin is not a store of value, and its use may link more to aggregate financial assets. “Along the geopolitical dimension, it’s pretty conclusive BTC is not digital gold.”
Bitcoin’s Recovery
At the time of writing, Bitcoin has already begun recovering from the weekend dump, rising above $66,700 on April 15.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
