Gold

PAX Gold

<p>PAX Gold is a digital coin equivalent to physical gold valued at $2,855 in April. While gold is usually thought of as digital gold went high while, Bitcoin, the cryptocurrency, saw a new price decline in an instant, in terms of the overall decline of the value of Bitcoin.</p>
<h2 class="wp-block-heading" id="the-price-of-paxg-amidst-the-broad-market-downfall">The price of PAXG amidst the broad market downfall</h2>
<p>PAX has risen to a new high level against other currencies, thus showing that the digital medium is more appealing during geopolitical crises, it may result in the crypto enhancing its status as a safe asset further. According to data from coinmarketcap</p>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-us.googleusercontent.com/gxInHPoEVb_bH4Gwm_ZaXnRQZKX6i_g8v_ftHNqLib0d_HeAYvt7GIteNp9JvhYUhEl1bP1jQYNTv33ADBqrs45yo4gqRT4JsXNjFywaGvFoD7k1bxwmA7OSamuKweRP1lAC4bOlDq_GTS1OXuBv1_4" alt="">
</figure>
<p>source:coinmarketcap</p>
<p>The uncertainty arising from the frenzy in the region provoked concerns in the global investor community, so many of them attributed their buying positions to elevating the price of gold-backed tokens.&nbsp;</p>
<h2 class="wp-block-heading" id="analyzing-the-crypto-market-response-to-political-uncertainty">Analyzing the&nbsp; crypto market response to political uncertainty</h2>
<p>The historically-driven pattern shows that during the period of uncertainty, gold is more likely to have the same performance as other tangible assets. On the other hand, the faster collapse of Bitcoin, from more than $67,500 to $62,700 around, testifies to the doubt as to its responsibility for the nervous system storage in financial crises. Bitcoin’s 7.5% plummet goes to show its volatility as well as a fragile relationship between cryptocurrency and geopolitics. This throws some doubt on Bitcoin’s accepted image as a safe place to keep your money.</p>
<p>These days many cryptocurrency <a href="https://twitter.com/bobeunlimited/status/1779512399420080564" rel="noopener noreferrer nofollow" target="_blank">experts</a> weigh that Bitcoin and PAXG is negative correlated, such Bob Elliott, the CEO of Unlimited Funds and the ex-senior executive of Bridgewater, puts forward a point that Bitcoin for a geopolitical influence stands for the inefficiency.&nbsp;</p>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">Bitcoin may be many things, but it is not a geopolitical hedge.<br><br>This weekend was another good empirical test. BTC traded with a near perfect negative correlation over the last day to <a href="https://twitter.com/search?q=%24PAXG&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">$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" target="_blank">pic.twitter.com/YH4NdJ9JMM</a></p>— Bob Elliott (@BobEUnlimited) <a href="https://twitter.com/BobEUnlimited/status/1779512399420080564?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow" target="_blank">April 14, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
<p>This evolution has stimulated the expansion of a searching for the intrinsic features of cryptocurrencies by the society. This has propelled the debate on the nature of cryptocurrencies and their role amid times of political upheaval.</p>
<h2 class="wp-block-heading" id="investors-community-s-watchful-eye">Investors community’s watchful eye</h2>
<p>The investment community remains vigilant, analyzing the behavior of various asset classes as they navigate a world brimming with geopolitical risks. The contrasting performance of <a href="https://www.cryptopolitan.com/gold-backed-cryptocurrencies-safeguard/" rel="noopener noreferrer nofollow">PAXG</a> and Bitcoin during this latest test case has provided valuable insights for both individual and institutional investors.</p>
<p>It is becoming increasingly clear that the inherent attributes of each cryptocurrency, such as their backing and perceived value, play significant roles in their response to global events. As the situation in the Middle East unfolds, the investment patterns regarding these crypto assets may further influence discussions on the nature of digital currencies and their potential as hedges against geopolitical risks.</p>
<p>The recent market reactions to the tensions in the Middle East serve as a reminder of the dynamic and often unpredictable nature of cryptocurrency investments. As the market digests these events, the ongoing evaluation of digital assets in the context of global stability will continue to shape investor strategies and confidence in these modern investment instruments.</p>

Geopolitical tensions prompt record high for PAX Gold as Bitcoin faces sharp decline

Table of Contents

Cryptopolitan_News

Autres articles publiés le 15 avr. 2024

Amidst THORChain & Fantom’s Market Adjustments, Fezoo’s Exchange Presale Offers a Strategic Inves...

Wormfare Ecosystem Launches Largest-Ever Cleanup Challenge

Bitcoin miners could liquidate $5b in BTC post-halving

New Cryptocurrency Parcl (PRCL) Listed on OKX Exchange

Bitcoin Price Prediction: Brace for ETF Impact! Analyst Maps Key Levels to Watch

Crypto Market Showing Recovery Signals, Will It Bounce Back?

Join our free newsletter for daily crypto updates!