A Sudden Surge in Bitcoin's Value
On October 24, 2023, bitcoin (BTC) experienced a robust 13% surge during the early morning trading hours, Eastern Time (ET). This rise catapulted bitcoin's value to $35,108 per unit, propelling the entire cryptocurrency market upwards by over 10%. As the market soared, traders who had placed their bets against crypto assets like bitcoin and ethereum found themselves in a tight spot. In a mere 24 hours, a staggering $323 million in crypto short positions evaporated.
Impressive Gains in the Cryptocurrency Market
Currently, the cryptocurrency market's value hovers around a whopping $1.3 trillion, marking a 10% increase. Within the past day, BTC's value ascended by 13%. Other major players also saw notable gains: ETH leaped by 9%, BNB ascended by 5%, and XRP and Solana both notched a 7% hike.
Short Positions Liquidated in a Flash
These rapid price escalations have left those who shorted top cryptocurrencies scrambling, as their positions vanished in the wake of these impressive and quick rallies. Recent data from Coinglass reveals that in the last 12 hours, the market witnessed the liquidation of $51.91 million in long positions and a hefty $103 million in short positions.
Breaking down the 24-hour stats, short positions worth $323 million were obliterated, and another $104 million in longs faced a similar fate. Notably, of the total shorts liquidated, bitcoin contracts made up a significant chunk, accounting for $232 million out of the $323 million total.
Meanwhile, ethereum (ETH) saw more than $64 million in shorts liquidated. Solana (SOL) shorts tallied up to about $11.4 million. Additionally, shorts from a myriad of other alternative crypto tokens totaled approximately $21.83 million.
Surge in Trading Volume and Open Interest
Coinglass data also highlighted a surge in trading volume, reaching $203 billion in the past 24 hours, a 143% increase from the previous day. Open interest now stands at nearly $29.73 billion, up 4.55%. In total, the last day saw crypto liquidations amounting to an eye-popping $429.46 million across both long and short positions.
What do you think about all the speculative bets being wiped out over the past 24 hours? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
How much gold should you have in your portfolio?
The amount of capital that you require will determine how much money you can make. A small investment of $5k-10k would be a great option if you are looking to start small. As your business grows, you might consider renting out office space or desks. This way, you don't have to worry about paying rent all at once. You just pay per month.
It's also important to determine what type business you'll run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. You might get paid only once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k to $2k of gold, and then growing from there.
What are the pros and disadvantages of a gold IRA
An Individual Retirement Account is a more beneficial option than regular savings accounts. You don't pay taxes on any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. However, there are disadvantages to this type investment.
To give an example, if your IRA is withdrawn too often, you can lose all your accumulated funds. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. A penalty fee will be charged if you decide to withdraw funds.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers may charge monthly management fees, ranging between $10 and $50.
If you prefer your money to be kept out of a bank, then you will need insurance. Insurance companies will usually require that you have at least $500,000. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit the number of ounces of gold that you can own. Others allow you to pick your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Physical gold is more costly than gold futures. Futures contracts allow you to buy gold with more flexibility. They allow you to set up a contract with a specific expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy doesn’t provide theft protection or loss due fire, flood, or earthquake. It does include coverage for damage due to natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
In addition to insurance, you'll need to consider the cost of storing your gold. Insurance doesn't cover storage costs. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
To open a IRA in gold, you will need to first speak with a qualified custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians can't sell assets. Instead, they must retain them for as long and as you require.
After you've determined which type of IRA is best for you, fill out the paperwork indicating your goals. Your plan should include information about the investments you want to make, such as stocks, bonds, mutual funds, or real estate. The plan should also include information about how much you are willing to invest each month.
After filling out the forms, you'll need to send them to your chosen provider along with a check for a small deposit. Once the company has received your application, they will review it and send you a confirmation email.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. Financial planners have extensive knowledge in investing and can help determine the best type of IRA to suit your needs. They can help you find cheaper insurance options to lower your costs.
What is a Precious Metal IRA (IRA)?
You can diversify your retirement savings by investing in precious metal IRAs. This allows you to invest in gold, silver and platinum as well as iridium, osmium and other rare metals. These precious metals are extremely rare and valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Precious metals are often referred to as “bullion.” Bullion refers actually to the metal.
You can buy bullion through various channels, including online retailers, large coin dealers, and some grocery stores.
An IRA for precious metals allows you to directly invest in bullion instead of purchasing stock shares. You'll get dividends each year.
Precious metal IRAs have no paperwork or annual fees. Instead, you only pay a small percentage on your gains. You also have unlimited access to your funds whenever and wherever you wish.
Statistics
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
bbb.org
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement funds
investopedia.com
finance.yahoo.com
How To
Guidelines for Gold Roth IRA
Starting early is the best way to save for retirement. It is best to start saving for retirement as soon you can (typically at age 50). To ensure sufficient growth, it is vital that you contribute enough each year.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles let you make contributions and not pay taxes until the earnings are withdrawn. This makes them a great choice for people who don’t have access employer matching funds.
The key is to save regularly and consistently over time. You will lose any potential tax advantages if you don't contribute enough.
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By: Jamie Redman
Title: Bitcoin's Meteoric Rise to $35,000 Erases $232M in Short Positions in Just 24 Hours
Sourced From: news.bitcoin.com/bitcoins-meteoric-rise-to-35000-erases-232m-in-short-positions-in-just-24-hours/
Published Date: Tue, 24 Oct 2023 16:30:13 +0000
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