Cryptocurrency

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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/gold-backed-cryptocurrency-hits-record-high-as-bitcoin-stumbles-during-middle-east-crisis" rel="noopener noreferrer nofollow">Gold-Backed Cryptocurrency Hits Record High as Bitcoin Stumbles During Middle East Crisis</a><br></p>
<p style="text-align: justify">In a recent financial turn, Paxos’ gold-backed <a href="https://en.bitcoinhaber.net/weekly-crypto-market-update-significant-developments-and-trends" rel="noopener noreferrer nofollow">cryptocurrency</a>, known as PAXG, reached an unprecedented peak coinciding with intensifying turmoil in the Middle East. This surge took place as <a href="https://en.bitcoinhaber.net/bitcoin-faces-possible-market-retreat-as-indicators-point-to-overheating" rel="noopener noreferrer nofollow">Bitcoin</a>‘s rate experienced a significant decline, shedding light on its volatile nature as a safe-haven asset. During a particular weekend spurt, Bitcoin’s value tumbled by 7.5% in just a few hours, while PAXG hit an all-time high value of $2,855 on April 13th.</p>
<h2 id="investor-sentiment-shifts-during-geopolitical-unrest">Investor Sentiment Shifts During Geopolitical Unrest</h2>
<p style="text-align: justify">Bob Elliott, CEO of Unlimited Funds and ex-Bridgewater executive, shared insights on a social platform, remarking on the inefficacy of Bitcoin as a geopolitical protective measure. The Middle East’s escalating tensions, triggered by Iran’s missile attacks on Israeli territories, prompted investors to seek refuge in gold and its digital counterparts. Elliott highlighted the inverse relationship between Bitcoin and PAXG during this period, suggesting Bitcoin’s deteriorating status as a risk hedge over time.</p>
<p style="text-align: justify">While PAXG experienced a momentary high, it eventually regressed to its prior value, pegged to the price of gold, which itself had seen a recent uptick to $2,400 per ounce. Following these events, PAXG stood at approximately $2,376. Despite the fluctuation, it had generally exhibited a 20% growth since early March, closely mirroring the trajectory of gold prices.</p>
<h2 id="experts-question-bitcoin-s-reliability-as-a-safe-haven-asset">Experts Question Bitcoin’s Reliability as a Safe-Haven Asset</h2>
<p style="text-align: justify">The cryptocurrency industry has noted that despite the Paxos token’s peak, its market liquidity remains low compared to other high-value cryptocurrencies. Concurrently, Elliott referenced Bitcoin’s past market behavior during geopolitical events such as the Hamas attack on Israel and the Russian incursion into Ukraine, underlining an increasingly negative correlation with geopolitical stability.</p>
<h3 id="inferences-from-this-article">Inferences from this Article</h3>
<ul>
 <li>PAXG’s value peaks are directly influenced by increased geopolitical tension.</li>
 <li>Bitcoin demonstrates vulnerability in times of geopolitical strife, leading to its questioning as a stable investment during such events.</li>
 <li>Gold and gold-backed digital assets remain sought-after during crises, reinforcing their status as traditional safe havens.</li>
</ul>
<p style="text-align: justify">Despite the immediate fallback, Bitcoin has shown signs of recovery, with early trades on April 15th positioning its value at $66,538. This rebound suggests a resilience in the cryptocurrency, although its reliability as a digital counterpart to gold during stressful geopolitical times remains disputed.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/gold-backed-cryptocurrency-hits-record-high-as-bitcoin-stumbles-during-middle-east-crisis" rel="noopener noreferrer nofollow">Gold-Backed Cryptocurrency Hits Record High as Bitcoin Stumbles During Middle East Crisis</a></h5>

Gold-Backed Cryptocurrency Hits Record High as Bitcoin Stumbles During Middle East Crisis

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