BTC falls after Middle East tensions...risk hedge role questioned

"Bitcoin has fallen following escalating tensions in the Middle East, raising questions about its role as a hedge against geopolitical risk," Cointelegraph reports. Bob Elliott, a former executive at global hedge fund giant Bridgewater, said: "While Paxos' physical gold-backed token PAXG has risen since the geopolitical risks in the Middle East, BTC has fallen with a negative correlation. BTC is losing value as a hedge over time." On the other hand, Checkmate (@checkmatey), a senior analyst at on-chain analytics firm Glassnode, said: "It's absurd to present PAXG as a comparable asset to BTC dumping. PAXG's daily trading volume is very low, around $36 million." On-chain analyst Willie Wu also noted that "BTC will recover in a matter of days," referring to the price relationship immediately after the Russia-Ukraine war.