Bitcoin and altcoins are experiencing significant losses due to the anxiety of war. Closures below $69,000 for BTC are concerning. Israel has just announced that it will respond to Iran within 48 hours. Previous statements had indicated that the situation would not calm down. However, this altcoin is reaching record levels despite all this.
Why Is PAXG Coin Rising?
PAXG Coin recently surged to $2,923, trading at roughly a 20% premium compared to gold’s Friday closing price of $2,342. With a market value of nearly half a billion dollars, PAXG is the world’s second-largest tokenized gold asset. The largest gold stablecoin is XAUT, issued by Tether.
While gold has risen over 8% in four weeks, BTC has melted by roughly 10%. On Friday, Goldman Sachs analysts raised their end-of-2024 gold price forecast to $2,700. However, the price of PAXG is approaching the $3,000 threshold, surpassing this prediction.
Analysts also mentioned that there has not yet been a surge in demand for gold. Goldman experts are expecting an increase in individual investor inflow and momentum to turn the year-end target into reality.
Is Black Monday Starting?
Fear is strong because, despite Biden’s advice not to escalate tensions, Israel announced it would respond to Iran within 48 hours. If Iran is targeted and responds in kind, this could lead to a major crash on Monday. Even though Iran fired hundreds of missiles, almost none reached Israel. However, Israel gained superiority with its latest attacks, which could silence opponents in the US and dissenting voices in the West.
Andy Constan, founder of macroeconomic research firm Damped Spring, said;
“And now everyone not involved with crypto is watching BTC to gauge the market impact of the war because it’s the only thing open when drones fly.”
Former Bridgewater Executive and Unlimited Funds CIO Bob Elliot said;
“Bitcoin can be many things, but it is not a geopolitical hedge. This weekend was a good experimental test. BTC recently traded with an almost perfect negative correlation to the gold-backed token PAXG. It’s becoming an even worse hedge over time.”
