PAXG has shown strength while the crypto market took a dive.. Binance saw an influx in volume hitting all time highs both in its usdt trading pair and in Btc trading pair
This is a sign that we may be seeing gold act as a hedge against a falling crypto market
A lot of the crypto market is not a capped supply offering and therefore it is digressing from an inflation hedge (minus bitcoin) and more as investment opportunity which can flourish when there’s confidence in the market.. when that confidence is shaken the tried and tested inflation hedge of gold seems to be returning
That said PAX hit $1900 as Bitcoin returned to $40,000.. their relationship certainly isn’t inverse but as time and data develops we may see a trend in gold price strength during crypto market weakness
This is a sign that we may be seeing gold act as a hedge against a falling crypto market
A lot of the crypto market is not a capped supply offering and therefore it is digressing from an inflation hedge (minus bitcoin) and more as investment opportunity which can flourish when there’s confidence in the market.. when that confidence is shaken the tried and tested inflation hedge of gold seems to be returning
That said PAX hit $1900 as Bitcoin returned to $40,000.. their relationship certainly isn’t inverse but as time and data develops we may see a trend in gold price strength during crypto market weakness
