Crypto News: Inverse Correlation Between Gold and Crypto?
Looking at what happened with the cryptospace last week and the bloodbath crypto hodlers took while they watched their precious Bitcoin and other cryptocurrencies nosedive is definitely worth the hastle... What can be learned from the recent correction in regard to safe havens? Where do people hide their money when BTC corrects?
Daniel Marburger, Director of Europe-based online gold dealer CoinInvest, claimed the company sold about 30 kilograms of gold, worth over $1 mln, in just one day, Jan. 16, in an interview with Bloomberg Wednesday, Jan. 17.
Clearly gold is a good place to park money at any time but it seems quite obvious that this is where many BTC holders decided to park their money when their hands got weak and they felt they needed to dump their precious BTC.
This week has been very volatile for Bitcoin and several industry insiders cited by Bloomberg believe that investors are looking for more stable assets in the meantime. Bitcoin, along with most other cryptocurrencies, experienced a crash of over 40% this Tuesday, Jan. 16 that lasted until Jan. 18, potentially causing a spike in gold investment.
This was a huge crash but also a much needed correction. Most experienced traders could see a top had been hit and quickly ran for the exits. But the need for a stable store of value was still on their mind and hence they began loading their bag with gold.
Marburger told Bloomberg that gold coin sales increased fivefold on Jan. 16, the same time cryptocurrencies were crashing.
So there you have it folks! If you want to play it the way the whales do, you may as well take profits on the way up and down and pack some gold aside for a rainy day!
“[Tuesday] was a hell of a crazy day,” Marburger said, adding that “emails and phones did not stand still with customers asking how they could turn their crypto into gold.”
A similar situation was described by the Ireland-based GoldCore LTD, where customers have been cashing out from cryptocurrencies and buying physical gold for the past three months.
The 20k USD number had been hit and many people in the know had a plan to correct at that point simply based on common charting techniques. If anything this story proves that gold remains to be a great store of value and one that inspires a lot of confidence still from investors.
What do you guys think of this story? Does this surprise you that many crypto investors are also gold bugs?
Thanks for reading @techblogger!
Source:
Gold Sales Spike During Crypto Market Crash, Highlighting Inverse Correlation - Coin Telegraph
Image Source:
Coin Telegraph
I feel there's an inverse correlation between crypto and many traditional investments. I know many pulling out of gold and stocks to invest in crypto and some even selling there investment properties. This causes the prices in other areas to tank as crypto grows.
It's not a surprise when the main purpose is making money. Those do not care about the philosophy. The ones who care just shut the screen and think about anything else, their focus is on the long-term. Both valid perspectives!
No surprises here. I have been writing about the relationship between gold and crypto for a while now. Have a read of my post from December 3 Traditional Gold Price Drivers & How Crypto Disrupts Them and check the chart comparison down the bottom ;)
Sounds good! Great to see I stirred the goldbugs with this post!
Makes complete sense to me...from my perspective, I treat bitcoin to "gold" and other resources would be alt coins...people need a safe sense of security, and bitcoin is that safe "gold" crypto equivalent.
One thing that most people don't understand, is if Bitcoin crashes, all other alt coins go down with it. Similar to how if Gold crashes, it will heavily affect the market - they are synonymous in that regard.
Great post :)
This is the logic behind why the moves last week were focused on selling crypto and buying gold. Always take profits on highs and keep them on the sidelines to invest when we see lows.
Great information, and you’re absolutely right, gold or silver is a good placement holder..
Absolutely! Gold and silver are safe bets!
I agree!
Great article about bitcoin, keep the god work.👍
It is better to invest on BTC than in gold because the rise of price of gold is quite slow.However,if you invest on BTC it might be quite risky but you may gain high."High risk,High gain"
Clearly any gold dealer who also buys and sells crypto is going to get a lot of business.
Excellent information friend that helps me learn more about this world of btc and the crypto coins I think what to invest in btc is better than in gold btc will grow more and more greetings
Hmm interesting