Gold-Backed Cryptocurrencies Rise 10% as Gold Prices Reach $2,880
Gold-backed cryptocurrencies are performing well amid a rise in gold prices, which increased by 9.7% this year to a record $2,880 per ounce due to trade war tensions.
- PAX Gold (PAXG) and Tether Gold (XAUT) have risen approximately 10%, correlating with the gold price.
- Gold miners' stocks also surged; VanEck Gold Miners ETF (GDX) is up nearly 20% this year.
- Transfer volumes for gold-backed cryptocurrencies rose over 53.7% month over month.
- Last year, global demand for gold reached 4,945.9 tons, valued at about $460 billion.
In contrast, major cryptocurrencies have underperformed; Bitcoin increased by 3.6%, while Ether fell by 17.6%. The CoinDesk 20 index saw a slight increase of around 0.5%.
Mike Cahill of the Pyth Network noted that the current market conditions favor traditional safe havens like gold. He suggested that Bitcoin could rebound significantly once risk appetite returns, especially if supportive crypto policies emerge.