"Other than this gold-backed crypto, the price goes up despite the Iran-Israel conflict."
A gold-backed cryptocurrency created by Paxos called PAX Gold (PAXG) rallied over the weekend as heightened geopolitical tensions in the Middle East fueled demand for the safe-haven asset.
Shortly after Bitcoin (BTC) was hit by Iran's firing of explosives at Israel, Iran also warned the country and the United States (US) that there could be a bigger backlash if they retaliate.
Please be informed that PAXG is the second largest tokenized gold coin in the world after tether gold (XAUT) which has a market capitalization of $581.9 million, therefore Goldman Sachs predicts gold prices will rise up to $2,700 following momentum and retail investors have not yet accumulated into the yellow metal.
It should also be noted that some crypto market participants who examined the rise of PAG and the fall of BTC over the weekend have wondered if the risk-off action in the crypto market is a sign that many will join stocks anyway.
That streak, many investors who are not involved in crypto right now may be watching BTC to gauge the impact of the war, commented Andy Constan who is the founder of the macroeconomic research firm Damped Spring.
Former Bridgewater Executive and Unlimited Funds Chief Information Officer (CIO) Bob Elliot said BTC's negative correlation with PAXG over the weekend has undermined the attractiveness of the leading digital asset as a geopolitical hedge.
As of this writing, the price of PAXG which is trading at $2,389 has plunged a little 3.47% in the last 24 hours with a market capitalization of over $436 million but still gained 3.82% over the last week.
