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 
Source:
Gold Sales Spike During Crypto Market Crash, Highlighting Inverse Correlation - Coin Telegraph
Image Source:
Coin Telegraph
