Tensions in the Middle East ramped up over the weekend following an Iranian drone and missile attack, which saw the price of PAX Gold and Bitcoin reacting very differently.
A 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 value as a geopolitical hedge.
The PAXG gold-backed crypto token hit $2,855 on April 13 as Bitcoin (BTC) 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, the co-founder and CEO of Unlimited Funds and former executive of Bridgewater, in a post on X.
