Over the recent weekend, as tensions in the Middle East escalated following an Iranian drone and missile attack on Israeli targets, the digital asset market saw divergent reactions between two prominent cryptocurrencies. PAX Gold (PAXG), a gold-backed token by Paxos, soared to a new high of $2,855 on April 13, while Bitcoin experienced a significant drop, plummeting $5,000 from over $67,500 to approximately $62,700, a decrease of 7.5% in a single day, according to CoinGecko data.
This stark contrast in performance has led to renewed scrutiny of Bitcoin's effectiveness as a geopolitical hedge. Bob Elliott, the co-founder and CEO of Unlimited Funds and a former executive at Bridgewater Associates, commented on social media platform X, “Bitcoin may be many things, but it is not a geopolitical hedge.” He observed a near-perfect negative correlation between Bitcoin and PAXG during this period, suggesting that Bitcoin's utility as a hedge may be diminishing over time.

While PAXG reached a peak coinciding with gold, which hit $2,400 per ounce last week, its momentum was short-lived, retreating to a spot gold-linked price of around $2,376. Despite the token's progress, climbing 20% since early March, it faces challenges such as low liquidity—its daily trading volume is around $36 million, significantly lower than more established cryptocurrencies.
On-chain analyst "Checkmatey" from Glassnode criticized market commentators using the temporary price increase of PAXG to undermine Bitcoin, labeling such comparisons as non-serious. Meanwhile, historical data highlighted by Elliott pointed to similar market behaviors in the past, including during the October 7 Hamas attack on Israel, where Bitcoin fell and gold rose. He further noted that during the Russian invasion of Ukraine in February 2022, Bitcoin's price movements were relatively random and confined to a tight range, whereas gold prices surged by 12% during the same period.
Despite recent challenges, Bitcoin has shown resilience, beginning its recovery early on April 15, with prices reaching $65,800. Elliott’s final take was clear, stating, "Along the geopolitical dimension, it's pretty conclusive BTC is not ‘digital gold.’”
This development underscores the complexity of cryptocurrency markets and the varied roles different assets may play in investors' portfolios, particularly in times of geopolitical uncertainty.
$BTC $PAXG
#Bitcoin #BTC #PAXG #Paxos

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Global payment giant #PayPal launches PayPalUSD (PYUSD) USD-backed stablecoin in a regulatory turning point for the crypto market.What is PYUSD?PayPalUSD (PYUSD) is a PayPal's stablecoin. PYUSD is an ERC-20 token issued on the Ethereum blockchain by #Paxos Trust Company, offering experiences within the PayPal ecosystem. PYUSD can easily be adopted by exchanges and will soon be available on Venmo, aligning with wallets and #Web3 applications.Designed to minimize friction for digital payments, facilitate domestic and international transfers, and foster direct transactions for developers and creators, PayPalUSD is aimed at encouraging major brands worldwide to participate in the digital asset market.PYUSD applicationsU.S. PayPal customers can buy and sell PYUSD, move between PayPal and compatible external wallets, make purchases with PYUSD, and convert supported cryptocurrencies to and from PYUSD. Users can buy, sell, hold, and transfer PayPalUSD within the PayPal app or website, sending and receiving funds to friends in the U.S. without fees. Being Ethereum-based, customers can easily send PayPalUSD to #Ethereum wallet addresses accepting PYUSD with just a few simple steps.When purchasing or selling cryptocurrencies, including crypto payments, the platform will disclose conversion rates and associated fees for the transaction.PYUSD usage and availabilityPYUSD is issued in collaboration between PayPal and Paxos. Currently, PYUSD is only available in the United States. PayPal has indicated potential deployment for customers in other countries in the future.Some users might receive a "We're not available in your area yet" error message when attempting to buy, sell, or hold #PYUSD on PayPal.Innovative safeguards, regulatory compliance, and its integration into PayPal's ecosystem position PYUSD as a significant player in the stablecoin market.PYUSD special featuresA distinguishing feature of PYUSD sets it apart from its competitors and has garnered support and expectations from experts in the market.PayPal's choice of Paxos as the issuing partner is based on Paxos' status as a chartered trust company regulated by the New York Department of Financial Services (NYDFS). Paxos' supervisory agency monitors all activities related to the issuance, including reserve management. All holders of PYUSD are protected under the supervision and regulations set by New York.These rules focus on eliminating bankruptcy risks. Customer assets are safeguarded even in the event of Paxos' bankruptcy – a situation increasingly relevant in today's cryptocurrency market. NYDFS intervenes, and PYUSD remains unaffected. This approach ensures that customers do not become creditors, and funds are returned to the owners.

#Paxos previously announced it will discontinue support for Binance's stablecoin by February 2024, and now Binance has also confirmed it will end support by the same date.

#Binance , a major cryptocurrency exchange, is urging its users to transfer their Binance USD (BUSD) stablecoin assets to a newly introduced stablecoin. This comes as the exchange plans to phase out support for #BUSD .

On August 31, Binance released an official statement, verifying rumors that it would progressively end support for BUSD by February 2024. This decision aligns with Paxos' intention to cease the redemption of BUSD by the same date.

This formal announcement from Binance comes after several of its users posted images online of a notification they received on the Binance mobile app about the upcoming discontinuation of BUSD support.

In an official release, Binance has advised its users to either trade or switch their BUSD holdings to First Digital USD (FDUSD). This stablecoin, introduced by the Hong Kong-based trust firm First Digital Group in June, was initially listed on Binance at the end of July.

Binance has further incentivized the transition from BUSD to FDUSD by offering fee-free trades and conversions between the two stablecoins. On August 30, the exchange removed eight trading pairs involving BUSD. Historically, Binance has promoted the use of the stablecoin by offering zero-fee trading pairs. For instance, they had no trading fees for FDUSD pairs with major cryptocurrencies like Bitcoin (BTC), which is currently priced at $27,241, and Ether.

Binance's move to discontinue BUSD support seems to be a response to regulatory pressures. On February 13, the U.S. Securities and Exchange Commission (SEC) suggested in a Wells notice to Paxos that BUSD might be considered an unregistered security. Concurrently, the New York Department of Financial Services directed Paxos to cease the issuance of BUSD. This double whammy of regulatory scrutiny likely influenced Binance's decision regarding its support for the stablecoin.

#SpaceCatch

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“