Over the recent weekend, escalating tensions in the Middle East, marked by an Iranian drone and missile attack, led to notable movements in the cryptocurrency market.

PAX Gold, a digital asset backed by gold from Paxos, saw its value surge to an unprecedented high amid this geopolitical unrest, drawing attention to its performance against Bitcoin (CRYPTO:BTC), which experienced a significant drop.

The price of PAXG soared to $2,855 on April 13, while Bitcoin witnessed a sharp decline, plummeting $5,000 in just a few hours, from over $67,500 to approximately $62,700, marking a 7.5% decrease within a single day as per CoinGecko data.

This contrasting response to the Middle East crisis has sparked a debate regarding Bitcoin's efficacy as a geopolitical hedge.

Bitcoin's notable dip in the wake of increasing geopolitical tensions has led to scepticism about its stability and reliability as a safe-haven asset during times of conflict.

Bob Elliott, co-founder and CEO of Unlimited Funds and a former executive at Bridgewater, voiced a critical perspective on X (formerly Twitter), stating, “Bitcoin may be many things, but it is not a geopolitical hedge,” highlighting the growing doubts about Bitcoin's role and resilience in volatile geopolitical landscapes.