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<p>Bitcoin’s use case as a hedge against geopolitical tensions is being questioned after it dropped to $62,000 over the weekend after Iran launched a missile and drone attacks against Israel.</p>
<p>Bitcoin lost 7.5% of its value on Saturday, plunging from over $67K to around $62K in minutes after news of Iran’s attack on Israel.</p>
<p>That prompted <a href="https://www.linkedin.com/in/ttoillebob" rel="noopener noreferrer nofollow">Bob Elliott</a>, a former top executive with $124 billion in assets fund manager Bridgewater Associates, to compare its performance to PAX Gold (PAXG), a gold-backed crypto token that rallied to a new all-time high of $2,855 after Iran’s attack.</p>
<p>“Bitcoin may be many things, but it is not a geopolitical hedge,” he said in a post on X. “This weekend was another good empirical test.”</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">Bitcoin may be many things, but it is not a geopolitical hedge.</p>
 <p>This weekend was another good empirical test. BTC traded with a near perfect negative correlation over the last day to <a href="https://twitter.com/search?q=%24PAXG&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$PAXG</a>, a gold backed token. If anything it's becoming an even worse hedge over time. <a href="https://t.co/YH4NdJ9JMM" rel="noopener noreferrer nofollow">pic.twitter.com/YH4NdJ9JMM</a></p>
 <p>— Bob Elliott (@BobEUnlimited) <a href="https://twitter.com/BobEUnlimited/status/1779512399420080564?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 14, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>He noted that BTC displayed a similar performance during the Oct. 7 Hamas attack on Israel. While gold tends to rally during such instances, BTC has exhibited a contrasting performance.</p>
<p>“Many make the case that rising geopolitical tensions are a positive for BTC prices,” said Elliott, now co-founder of Unlimited. “The empirical evidence suggests otherwise. If anything, it looks to be getting more negative over time. BTC is not ‘digital gold.’”</p>
<h2 id="bitcoin-crash-is-due-to-retail-activity">Bitcoin Crash Is Due To Retail Activity</h2>
<p>Some analysts disagreed with Elliott’s conclusion of Bitcoin’s underperformance during times of geopolitic tension, saying the weekend crash was due to panic by retail and leveraged traders.</p>
<p>One trader noted that crypto was the only risk asset trading over the weekend, and comparing it with other assets was unfair.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr">But it’s not fair to use weekend panic price action (retail/leverage predominantly) when liquidity and participation is low and no other risk assets are open and accessible to go YOUUUUURS ! <br>Both <a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$BTC</a> and <a href="https://twitter.com/search?q=%24PAXG&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$PAXG</a> would have witnessed exaggerated moves that would have been…</p>
 <p>— Mazen Barbir (@mazen_barbir) <a href="https://twitter.com/mazen_barbir/status/1779528877804499391?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 14, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>PAXG has low liquidity, with only $44 million in daily tra<span style="background-color: var(--bs-body-bg); color: var(--bs-body-color); font-family: var(--bs-body-font-family); font-size: var(--bs-body-font-size); font-weight: var(--bs-body-font-weight); text-align: var(--bs-body-text-align);">ding volumes. In contrast, Bitcoin’s 24-hour trading volumes stand at over $27 billion.</span></p>
<p>Those were among factors that prompted commentators like “Checkmatey,” an on-chain analyst at Glassnode, to criticize comments such as those made by Elliott.</p>
<p>”Folks who posted about the price of an illiquid gold token trading higher today as a dunk on #Bitcoin are an unserious market commentator,” Checkmatey said.</p>
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Bitcoin is Not a Geopolitical Hedge, Ex-Bridgewater Exec Says After BTC Plummeted On Middle East Tensions

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Další články publikované 15. 4. 2024

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