Bitcoin

Gold

PAX Gold

<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>
<h3 id="also-read">Also Read:</h3>
<ul>
 <li><a href="https://insidebitcoins.com/news/crypto-market-facing-six-month-lull-with-bitcoin-miners-set-to-offload-up-to-5-billion-btc-after-the-bitcoin-halving-10x-research-says" rel="noopener noreferrer nofollow">Crypto Market Facing ”Six-Month Lull” With Bitcoin Miners Set To Offload Up To $5 Billion BTC After The Bitcoin Halving, 10X Research Says</a></li>
 <li><a href="https://insidebitcoins.com/news/bitcoin-and-cryptocurrencies-experience-significant-downturn-amid-geopolitical-tensions" rel="noopener noreferrer nofollow">Bitcoin and Cryptocurrencies Experience Significant Downturn Amid Geopolitical Tensions</a></li>
 <li><a href="https://insidebitcoins.com/news/cat-in-a-dogs-world-price-prediction-mew-goes-ballistic-with-a-108-surge-but-investors-pivot-to-this-multi-chain-doge-derivative-for-parabolic-gains" rel="noopener noreferrer nofollow">Cat In A Dogs World Price Prediction: MEW Goes Ballistic With A 108% Surge, But Investors Pivot To This Multi-Chain DOGE Derivative For Parabolic Gains</a></li>
</ul>

Bitcoin is Not a Geopolitical Hedge, Ex-Bridgewater Exec Says After BTC Plummeted On Middle East Tensions

目錄

Inside Bitcoins

在 2024年4月15日發表的其他文章

Spot Bitcoin ETF: Fidelity Investments Break 63-Day Inflow Streak

PEPE’s wild April journey: From panic sells to a 33% bounce

Wormfare Ecosystem Launches Largest-Ever Cleanup Challenge

Global Geopolitical Chaos, a Springboard for Bitcoin – Michael Saylor

Unleash the Thrill of SirWin’s Slot Galore

OKX launches WIF and MEW spot trading amid memecoin craze

訂閱免費電子報，每天收取加密貨幣最新動態！