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PAXG achieved a record high of $2,855 on April 13 amidst the ongoing turmoil in the Middle East following the missile and drone strikes.
The price movements of PAXG over the weekend have sparked inquiries regarding Bitcoin’s role as a geopolitical safeguard.
While the PAXG token surged to its peak, Bitcoin’s value fell from $67,140 to a low of approximately $62,000, as reported by CoinMarketCap.
Research from Bridgewater Associates revealed that Bitcoin’s trading volume exhibited a “near-perfect negative correlation over the last day to PAXG.”
“If anything, it’s becoming an even worse hedge over time,” the study noted regarding Bitcoin.
However, the PAXG token was unable to maintain its upward trajectory, retracting to $2,363 at the time of this report.
Since early March, the PAXG price has experienced a gradual increase, reaching a peak of $2,400 per ounce last week due to a 20% rise in gold prices.
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In contrast, Paxos liquidity remains stable compared to major cryptocurrencies like Bitcoin, which trade in the billions.
Previous global conflicts that affected Bitcoin’s price
In a similar vein, Bitcoin’s value dropped on October 7 following the Hamas attack on Israel, while gold prices increased.
Another notable instance of Bitcoin price volatility occurred when Russia declared its invasion of Ukraine.
“The value of the cryptocurrency dropped around 7.5 percent on Thursday morning, as traditional markets were also thrown into disarray,” stated the Independent.
Bitcoin does not serve as a reliable store of value, and its usage may be more closely associated with the overall financial asset landscape.
“Along the geopolitical dimension, it’s pretty conclusive BTC is not digital gold.”
As of this report, Bitcoin has begun to recover from the weekend decline, rising above $66,700 on April 15.
The post PAXG Reaches All-Time High Amid Middle East Unrest, Prompting Bitcoin Hedge Discussion appeared first on Cryptonews.
