Why did the price of PAXG fall?

PAX Gold (PAXG) dropped 5.06% in the last 24 hours, underperforming the overall crypto market, which fell about 1%. Here’s why:

1. Gold’s sharp fall – Spot gold prices dropped 6%, marking the biggest one-day decline since 2013, pulling PAXG down with it.
2. Shift toward riskier assets – Bitcoin went up by 2%, and stocks rallied, drawing money away from gold-related investments.
3. Technical breakdown – PAXG fell below important support levels, signaling more selling pressure.

Deep Dive

1. Gold’s Historic Drop (Negative Impact)

On October 21, 2025, spot gold prices fell 6% to $4,122 per ounce, the largest single-day drop since 2013 (Crypto.News). Since PAXG is designed to match gold’s price exactly, it followed this downward trend. The sell-off came after U.S. companies reported better-than-expected earnings, which reduced the demand for safe investments like gold.

What this means: Gold and PAXG prices move almost perfectly together (99% correlation), so changes in gold’s demand quickly affect PAXG. Experts like Peter Schiff called this a “shakeout,” meaning it’s a short-term drop, and gold staying above $4,100 suggests longer-term strength. However, for now, investors are favoring riskier assets.

What to watch: If gold falls below $4,100, PAXG could continue to decline.

2. Shift Toward Riskier Assets Like Bitcoin (Mixed Impact)

During the same period, Bitcoin’s price rose by 2% to $112,000, and the S&P 500 stock index also gained (Crypto.News). This shows investors are moving money from gold into cryptocurrencies and stocks, driven by optimism about the economy.

What this means: PAXG competes with Bitcoin as a way to store value. When investors feel confident (due to strong earnings reports or expectations of lower interest rates), they often prefer Bitcoin’s potential for growth over gold’s stability.

3. Technical Breakdown (Bearish Signal)

PAXG’s price dropped below its 7-day simple moving average (SMA) of $4,269 and 30-day SMA of $3,993, which are key technical support levels. The MACD indicator turned negative (-1.58), and the RSI dropped to 44.36, showing weakening buying interest.

What this means: Traders who use technical analysis likely increased selling after PAXG fell below $4,074, a key retracement level. The next support level to watch is $3,856.

Conclusion

PAXG’s recent decline is mainly due to gold’s broad sell-off, investors shifting to riskier assets like Bitcoin, and technical factors signaling more downside. While gold’s long-term trend remains strong (up nearly 47% over the past year), PAXG could face more pressure if investors keep favoring riskier investments.

What to watch: Gold’s price stability and Bitcoin’s market strength—any changes here could boost demand for tokenized gold again.

What could affect the price of PAXG?

PAX Gold (PAXG) price movements depend on gold’s market changes, how much risk investors are willing to take in crypto, and how widely tokenized assets are adopted.

1. Gold’s Big Picture – Changes in interest rates or strong stock market rallies can reduce gold’s appeal as a safe investment.
2. Competition Among Tokenized Gold – Other tokenized gold assets like XAUt are challenging PAXG’s position in the $3.4 billion market.
3. Crypto Market Mood – When Bitcoin prices rise, money may flow out of gold-backed tokens like PAXG.

Deep Dive

1. Gold’s Big Picture (Mixed Effects)

Overview:
PAXG is directly linked to the price of gold, which has increased 49% over the past year but recently dropped 3.9% in one day (as of October 21). Gold’s future price depends on Federal Reserve policies, real interest rates, and global political tensions.

What this means:
PAXG tends to do well if concerns about economic stagnation with inflation (stagflation) or geopolitical conflicts in places like the Middle East rise. On the other hand, if stock markets rally or Bitcoin strengthens its reputation as “digital gold,” PAXG may face downward pressure (Crypto.news).

2. Competition Among Tokenized Gold (Bearish Impact)

Overview:
PAXG faces competition from Tether’s XAUt, which surpassed PAXG in market value ($1.43 billion vs. $1.35 billion) in September 2025. XAUt’s ability to operate across multiple blockchain platforms and its lower transaction fees make it attractive to large investors (Yahoo Finance).

What this means:
PAXG risks losing market share unless its issuer, Paxos, expands support to more blockchains or reduces its 0.02% transaction fees.

3. Crypto Market Mood (Bearish Risk)

Overview:
On October 21, PAXG’s price dropped 6% while Bitcoin rose 2%, showing an inverse relationship. The crypto market’s Fear & Greed Index was at 29 out of 100, indicating high caution among investors. If sentiment shifts toward risk-taking, gold-backed tokens like PAXG could suffer (Crypto.news).

What this means:
PAXG tends to perform better during “crypto winters” when investors seek safety, but it may lag when investors favor altcoins. Keep an eye on Bitcoin’s market dominance (currently 59.1%) and trends in altcoin investments.

Conclusion

In the short term, PAXG faces pressure from gold’s recent price drop and a rebound in crypto markets. However, long-term growth is possible as decentralized finance (DeFi) platforms, like Aave integrating XAUt, increase adoption. Upcoming events like the Federal Reserve meeting on November 5 and PAXG’s Relative Strength Index (RSI) at 44.36 (7-day) could signal buying opportunities.

Will Bitcoin’s rally cause investors to move away from tokenized gold for good?

What are people saying about PAXG?

PAX Gold (PAXG) is moving with gold’s ups and downs—traders are watching for rebounds while decentralized finance (DeFi) adoption slowly grows. Here’s what’s happening:

1. Technical traders see rebound opportunities amid gold’s price swings
2. Institutional interest supports positive outlooks
3. DeFi use of PAXG is expanding, but liquidity issues remain
4. Gold’s recent 6% drop raises caution

Deep Dive

1. @genius_sirenBSC: PAXG rebound gaining attention 🐂

"If $PAXG holds $3,600 support, next target $3,900"
– @genius_sirenBSC (23K followers · 18K impressions · 2025-09-22 17:24 UTC)
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What this means: Technical analysts see $3,600 as a key support level for PAXG. If this holds, there’s potential for a 6% price increase, assuming overall market conditions stabilize.

2. @0xHoward_Peng: Competition heats up between PAXG and XAUt 🔥

"PAXG and Tether Gold hit $3.2B monthly volume"
– @0xHoward_Peng (9.2K followers · 12K impressions · 2025-10-16 08:14 UTC)
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What this means: While PAXG’s growing use is positive, it faces strong competition from Tether Gold (XAUt) in the $3 billion tokenized gold market, which could affect its market share.

3. @DefiIgnas: DeFi adoption of PAXG is progressing 🧩

"Aave voting to add XAUt, Curve offers PAXG pools"
– @DefiIgnas (41K followers · 28K impressions · 2025-06-18 13:09 UTC)
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What this means: This is a positive sign for PAXG’s long-term use, as it gains more utility in DeFi platforms. However, current liquidity challenges are evident, with a 0.76% price impact on $1 million trades.

4. crypto.news: Gold’s drop weighs on PAXG 🐻

"PAXG tumbles 6% as gold sees worst drop since 2013"
– crypto.news (2025-10-21 20:18 UTC)
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What this means: Short-term outlook is bearish. PAXG closely follows the price of physical gold (0.98 correlation), so if investors remain risk-on, PAXG could face further declines.

Conclusion

The outlook for PAXG is mixed. On one hand, institutional adoption and technical analysis suggest potential gains. On the other, its strong link to gold’s price and signs of being overbought raise caution. Keep an eye on the $3,600 support level and the new PAXG/USDT trading pair on OKX, which launched on October 15 and saw $76 million in volume during its first week—this could improve liquidity. Ultimately, gold’s reaction to Federal Reserve policies will continue to drive PAXG’s price.

What is the latest news about PAXG?

PAX Gold (PAXG) is experiencing ups and downs alongside gold’s recent price swings. Big investors, known as whales, are making significant moves, and decentralized finance (DeFi) platforms are starting to use PAXG, adding to its price changes. Here’s the latest:

1. Gold Price Drop Pulls PAXG Down (October 21, 2025) – PAXG’s price fell 6% following gold’s biggest single-day drop since 2013.
2. Whales Buy $30 Million in Tokenized Gold (October 15, 2025) – Large investors bought a lot of PAXG as gold hit record highs.
3. Warning Signs of Overbuying (October 15, 2025) – PAXG’s Relative Strength Index (RSI) reached 87, suggesting the price might be too high and due for a correction.

In-Depth Look

1. Gold Price Drop Pulls PAXG Down (October 21, 2025)

What happened:
PAXG’s price dropped to $4,120, down 6% in one day, closely following gold’s fall to $4,122 per ounce—the biggest drop since 2013. Experts say investors shifted their money from gold to riskier assets like Bitcoin (which rose 2%) and stocks. Some see this as a “great rotation” from gold to cryptocurrencies. Gold supporter Peter Schiff called this a “shakeout,” pointing out that gold still stayed above $4,100, a recent record high.

What it means:
Since PAXG is designed to track the price of physical gold, its price moves closely with gold’s. If investors keep favoring riskier assets, PAXG might stay under pressure in the short term. However, PAXG has gained over 10% in the past month, showing it still has strong support. (Crypto.News)

2. Whales Buy $30 Million in Tokenized Gold (October 15, 2025)

What happened:
Two large crypto investors bought $30 million worth of gold-backed tokens, including PAXG, as gold prices hit new all-time highs between $4,117 and $4,218 per ounce. PAXG’s total market value rose to $1.3 billion, making it the second-largest tokenized gold asset after Tether Gold.

What it means:
Big investors are increasingly interested in tokenized gold because gold’s market is huge—over $29 trillion—and PAXG offers the advantage of self-custody, meaning investors can hold their tokens securely without relying on third parties. This shows PAXG is becoming a popular way to protect wealth during uncertain economic times. (Coinspeaker)

3. Warning Signs of Overbuying (October 15, 2025)

What happened:
PAXG’s RSI, a tool that measures if an asset is overbought or oversold, jumped to 87.16—well above the typical overbought level of 70. This suggests the price might be too high and could drop soon. Analysts point out that after a 21.6% gain over 90 days, a price correction might be coming due to less price movement and more speculative buying.

What it means:
Even though gold’s strong price supports PAXG, traders should watch the $4,100 price level closely. If PAXG falls below this, some investors might sell to lock in profits. However, growing use of PAXG in platforms like Aave’s XAUt could help reduce sharp price drops. (Finbold)

Conclusion

PAXG’s price closely follows gold’s overall market trends but is also influenced by shifts in the crypto market and technical trading signals. Recent big purchases and growing use in financial platforms suggest PAXG has long-term potential. Still, traders should be prepared for price swings as gold’s rally cools off. The big question remains: Will Bitcoin’s rise put more pressure on PAXG, or can tokenized gold establish itself as a unique safe investment combining the best of both worlds?

What is expected in the development of PAXG?

PAX Gold (PAXG) is making important progress with these key updates:

1. OKX Spot Listing (October 15, 2025) – PAXG will be available for trading on OKX, increasing how easy it is to buy and sell.
2. DeFi Integration Push (Q4 2025) – Working to make PAXG usable in decentralized finance (DeFi) platforms for lending and borrowing.
3. Institutional Redemption Upgrades (2026) – Improving how large investors can exchange PAXG for physical gold more quickly and smoothly.

Deep Dive

1. OKX Spot Listing (October 15, 2025)

Overview:
Starting October 15, 2025, PAXG will be listed on OKX’s spot market, with early trading beginning at 6:00 AM UTC. To keep prices stable, there will be a $10,000 limit per trade at first. This follows earlier listings on WOO X (April 2025) and Bitso (2022), showing a clear plan to expand where PAXG is available.

What this means:
This is good news for PAXG because new exchange listings usually increase trading activity and make it easier for both everyday and professional investors to access the token. However, there might be some price swings during the early trading phase due to limits on price changes.

2. DeFi Integration Push (Q4 2025)

Overview:
Paxos, the company behind PAXG, is partnering with DeFi platforms like Aave (which has passed initial checks) and Curve (which offers a pool combining $XAUt and PAXG with a 2% yield). The goal is to let users use PAXG as collateral in DeFi, tapping into growing interest in gold-backed digital assets. PAXG’s market value is close to $1.3 billion, slightly ahead of Tether Gold’s $1 billion.

What this means:
This move could increase PAXG’s usefulness and demand, which is positive. But since PAXG doesn’t generate interest like some stablecoins do, it still faces challenges in attracting users. Success will depend on incentives from DeFi platforms and gold’s appeal as a safe asset.

3. Institutional Redemption Upgrades (2026)

Overview:
Paxos plans to make it easier for large investors to redeem PAXG for physical gold bars certified by the London Bullion Market Association (LBMA). Right now, this process requires manual steps through Paxos.com, which can be slow and complicated for big holders.

What this means:
If these improvements happen, it could build more trust and bring in traditional financial institutions interested in gold. However, there could be delays or regulatory challenges related to handling physical gold.

Conclusion

PAXG’s roadmap is focused on making the token more accessible (through exchange listings), more useful (via DeFi), and more attractive to big investors (with redemption upgrades). As the total market value of tokenized gold approaches $3.4 billion, the question is whether PAXG can surpass Tether Gold and lead the next wave of real-world asset adoption in crypto.

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What updates are there in the PAXG code base?

PAX Gold’s (PAXG) technology remains steady, with no major changes recently since its main focus is on representing physical gold through digital tokens.

1. Proxy Upgrade Mechanism (2023) – Keeps the system flexible for future improvements without changing the token’s address.
2. Fee Structure Optimization (2022) – Simplified transfer fees that cover the cost of storing the physical gold backing the tokens.
3. Beta Delegated Transfers (2021) – Allows certain transactions without users paying gas fees, making it easier for some users to send tokens.

Deep Dive

1. Proxy Upgrade Mechanism (2023)

What it is: PAXG uses a special setup called a proxy contract. This lets the team update the token’s underlying code without changing its Ethereum address. That means users and exchanges don’t have to adjust anything when upgrades happen.

The actual logic (how the token works) can be swapped out using a function called upgradeTo(), but important data like balances and total supply stay safe and unchanged. Security experts from Trail of Bits and Certora have reviewed this system to make sure it’s secure.

Why it matters: This feature is neutral for users right now. It doesn’t change how PAXG works day-to-day but allows the team to improve security or efficiency in the future, after careful testing.

2. Fee Structure Optimization (2022)

What it is: PAXG charges a very small fee (0.02%) on token transfers. This fee helps cover the cost of storing the physical gold that backs each token. The fee is calculated precisely to make sure users get the right amount credited after fees.

Why it matters: This is a positive change. It makes sure the costs of holding real gold are covered while keeping transaction fees low compared to traditional gold investment options like ETFs. This helps PAXG stay efficient and sustainable.

3. Beta Delegated Transfers (2021)

What it is: This feature lets users send PAXG tokens without paying gas fees (transaction costs on Ethereum) by using approved third parties to handle the transaction.

Why it matters: This is neutral for most users because it’s still not widely used. It’s helpful for institutions or advanced users but most everyday users still use the standard way of sending tokens.

Conclusion

PAX Gold’s technology focuses on stability and following regulations rather than frequent updates. Features like upgradeable contracts and optimized fees help it grow smoothly without disrupting how it works. With gold prices rising above $4,100 in October 2025, it will be interesting to see how PAXG’s design adapts to increased demand.

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