Bitcoin and altcoins are experiencing losses due to tensions in the Middle East, while PAXG Coin is trading at a high premium compared to gold. Israel’s announcement of responding to Iran’s actions has shaken the markets with concerns of war. This situation is considered a worrying development for Bitcoin to close below $69,000, while PAXG Coin has reached record levels.
Why is PAXG Rising?
PAXG Coin’s market cap is nearly half a billion dollars and ranks second among tokenized gold assets. While gold prices have risen by 8% in four weeks, PAXG Coin is trading well above the price of gold. Despite Goldman Sachs raising its end-of-2024 gold price forecast to $2,700, the price of PAXG has approached the $3,000 mark.
Is Black Monday Beginning?
Israel’s announcement of taking action against Iran raises concerns about a potential conflict that could lead to a significant downturn in the markets. Even though Iran’s missiles may not reach Israel, Israel is said to have the upper hand. The impact of geopolitical tensions on the markets continues to be a subject of interest in how cryptocurrencies will react to this situation.
User Notes
Crypto markets can be rapidly affected by global geopolitical events.
PAXG Coin stands out as a cryptocurrency based on physical gold.
Increased tension between Israel and Iran poses a risk for the cryptocurrency markets.
The negative correlation between Bitcoin and gold can be a significant indicator for investors.
Analysts predict that demand for gold has not yet increased, but it may rise towards the end of the year. Additionally, the reaction of crypto assets to geopolitical events, especially Bitcoin, is considered an important indicator for investors. With the increasing geopolitical risks, the market behavior of cryptocurrencies should be closely monitored.
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