The world's leading cryptocurrency, Bitcoin, experienced a significant dip in its value, reaching a ten-day low. This drop coincided with the ongoing trial of Sam Bankman-Fried (SBF) and the anticipatory climate ahead of the upcoming U.S. Producer Price Index, a crucial measure of inflation.
Bitcoin's Four-Day Decline Amid SBF's Trial
For the fourth consecutive day, Bitcoin (BTC) witnessed a downward trend, a situation closely monitored by traders globally due to the ongoing legal proceedings involving SBF. The former CEO of Alameda Research, Caroline Ellison, accused SBF of instructing her to commit fraud by presenting less risky balance sheets of Alameda to potential investors.
From its Tuesday high of $27,605.82, BTC/USD plummeted to an intraday low of $27,017.64, marking Bitcoin's weakest point since the commencement of October. The drop was so severe that it led to Bitcoin momentarily falling beneath the $27,100 mark before market bulls stepped in. The Relative Strength Index (RSI) also dipped below its support point at 53.00, currently hovering at 51.67.
However, Bitcoin has demonstrated resilience by bouncing back from its earlier low and is presently trading at $27,292.17.
Ethereum's Struggle with Key Support and the Potential Downfall
Ethereum (ETH), another major cryptocurrency, rebounded above a significant support point of $1,565 after breaking through this level earlier in the day. ETH/USD dipped to an early day low of $1,551.68, only to bounce back to its current trading price of $1,575.39.
Despite its rally, Ethereum remains lower than its Tuesday's peak at $1,587.56, keeping it close to a one-month low. The recent sell-off led to a cross between the 10-day (red) moving average and its 25-day (blue) counterpart.
If this crossover trend continues in a downward direction, there's a possibility Ethereum may soon drop below the $1,500 mark. The question remains – will Ethereum face further downward pressure this week? The answer lies in the unfolding market trends.
Frequently Asked Questions
What is the Performance of Gold as an Investment?
The supply and demand for gold affect the price of gold. It is also affected by interest rates.
Due to their limited supply, gold prices fluctuate. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
What are the benefits of a Gold IRA?
An Individual Retirement Account (IRA) is the best way to put money towards retirement. It is tax-deferred until it's withdrawn. You are in complete control of how much you take out each fiscal year. There are many types and types of IRAs. Some are better suited for people who want to save for college expenses. Others are intended for investors seeking higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. The earnings earned after they withdraw the funds aren't subject to any tax. So if you're planning to retire early, this type of account may make sense.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA you don't need to worry about taxes while you wait for your gains to be available. For people who would rather invest than spend their money, gold IRA accounts are a good option.
An additional benefit to owning gold through an IRA, is the ease of automatic withdrawals. That means you won't have to think about making deposits every month. You could also set up direct debits to never miss a payment.
Finally, gold remains one of the best investment options today. Because it isn't tied to any particular country its value tends be steady. Even in economic turmoil, gold prices tends to remain relatively stable. Therefore, gold is often considered a good investment to protect your savings against inflation.
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. Many people today are moving away from stocks and bonds to look at precious metals, such as gold, as a way to diversify their investments.
Although gold prices have shown an upward trend in recent years, they are still relatively low when compared to other commodities like oil and silver.
Some experts think that this could change in the near future. They believe gold prices could increase dramatically if there is another global financial crises.
They also point out that gold is becoming popular because of its perceived value and potential return.
Consider these things if you are thinking of investing in gold.
- Before you start saving money for retirement, think about whether you really need it. You can save money for retirement even if you don't invest in gold. The added protection that gold provides when you retire is a good option.
- Second, ensure you fully understand the risks involved in buying gold. Each type offers varying levels and levels of security.
- Remember that gold is not as safe as a bank account. You may lose your gold coins and never be able to recover them.
Don't buy gold unless you have done your research. If you already have gold, make sure you protect it.
Is buying gold a good retirement plan?
Although buying gold as an investment might not sound appealing at first, when you look at the average annual gold consumption worldwide, it is worth looking into.
The best form of investing is physical bullion, which is the most widely used. You can also invest in gold in other ways. You should research all options thoroughly before making a decision on which option you prefer.
If you don’t need a safe place for your wealth, then buying shares of mining companies or companies that extract it might be a better alternative. If you require cash flow, gold stocks can work well.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs can include stocks of precious metals refiners and gold miners.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
irs.gov
bbb.org
finance.yahoo.com
How To
The best place to buy silver or gold online
Understanding how gold works is essential before you buy it. It is a precious metal that is very similar to platinum. It's very rare and is used as money because of its durability and resistance to corrosion. It's hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
Today, there are two types available in gold coins: one is legal tender and the other is bullion. The legal tender coins are issued for circulation in a country. They usually have denominations such as $1, $5, $10, and so on.
Bullion coins are only minted to be used for investment purposes. Their value increases over time because of inflation.
They are not exchangeable in any currency exchange system. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. The buyer receives 1 gram of gold for every dollar spent.
When looking to buy precious metals, the next thing you should be aware of is where it can be purchased. There are several options available if your goal is to purchase gold from a dealer. First, you can visit your local coin store. Another option is to go through a reputable site like eBay. You might also consider buying gold from an online private seller.
Individuals who sell gold at wholesale and retail prices are called private sellers. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. A private seller will usually return less money than a coin shop and eBay. This option can be a good choice for investing in gold because it allows you to control the price.
Another way to buy gold is by investing in physical gold. You can store physical gold much more easily than you can with paper certificates. However, it still needs to be safe. You need to make sure that your physical gold is safe by storing it in an impenetrable container like a vault or safety depositbox.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank will be able to provide you with a loan for the amount of money you want to invest in gold. Small establishments that allow customers to borrow money for items they have brought are called pawnshops. Banks typically charge higher interest rates than pawn shops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold is also easy. Set up a simple account with GoldMoney.com and you will start receiving payments instantly.
—————————————————————————————————————————————————————————————–
By: Eliman Dambell
Title: Bitcoin's Tumble to a Ten-Day Low: Impact of Ongoing Legal Proceedings and Inflation Concerns
Sourced From: news.bitcoin.com/bitcoin-ethereum-technical-analysis-btc-hits-10-day-low-caroline-ellison-confirms-fraud-on-behalf-of-sbf/
Published Date: Wed, 11 Oct 2023 12:30:41 +0000
Leave a Reply