Analyst Recommends Buying Bitcoin Dip
A senior analyst specializing in digital assets at global asset management firm Alliance Bernstein, Gautam Chhugani, has advised investors to take advantage of the recent bitcoin dip and focus on the new bitcoin adoption cycle. This recommendation comes as the U.S. Securities and Exchange Commission (SEC) approved several spot bitcoin exchange-traded funds (ETFs). Chhugani believes that the minor selloffs present opportunities for investors, given the potential asymmetric upside in the future.
Approval of Spot Bitcoin ETFs by SEC
Last week, the SEC approved a total of 11 spot bitcoin ETFs, causing a surge in the price of bitcoin to over $49,000. However, the price subsequently dropped to around $42,000. At the time of writing, bitcoin is currently trading at $43,170.14. The approval of these ETFs is seen as a significant milestone in the cryptocurrency industry.
Alliance Bernstein's Prediction for Bitcoin Price
In a note released in November last year, Alliance Bernstein predicted that the price of bitcoin would reach $150,000 by 2025. Chhugani explained that this forecast was based on the optimism surrounding the anticipated approval of spot bitcoin ETFs. He emphasized that a dispassionate view of bitcoin as a commodity suggests a turn of the cycle, regardless of personal opinions about the cryptocurrency.
Impact of Spot Bitcoin ETF Approval
The approval of spot bitcoin ETFs by the SEC is considered a landmark moment for the crypto industry. Alesia Haas, the chief financial officer of crypto exchange Coinbase, described it as "a landmark day for crypto." She also highlighted the potential for widespread adoption of cryptocurrency, stating that spot bitcoin ETFs will enable trillions of dollars that were previously unable to access crypto assets and bitcoin.
Conclusion
The recommendation from the Alliance Bernstein analyst to buy the bitcoin dip amidst the SEC's approval of spot bitcoin ETFs has garnered attention in the cryptocurrency community. Investors are advised to consider the potential upside of the new bitcoin adoption cycle when making investment decisions. As the cryptocurrency market continues to evolve, it is crucial to stay informed and evaluate opportunities for growth and diversification.
What are your thoughts on the analyst's recommendation? Let us know in the comments section below.
Frequently Asked Questions
Should You Buy Gold?
Gold was a safe investment option for those who were in financial turmoil. Many people are now turning their backs on traditional investments like stocks and bonds, and instead look to precious metals like Gold.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
This could be changing, according to some experts. They say that gold prices could rise dramatically with another global financial crisis.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
These are some important things to remember if your goal is to invest in gold.
- The first thing to do is assess whether you actually need the money you're putting aside for retirement. It is possible to save for retirement while still investing your gold savings. That said, gold does provide an additional layer of protection when you reach retirement age.
- Second, you need to be clear about what you are buying before you decide to buy gold. Each offer varying degrees of security and flexibility.
- Don't forget that gold does not offer the same safety level as a bank accounts. It is possible to lose your gold coins.
Don't buy gold unless you have done your research. Protect your gold if you already have it.
What's the advantage of a Gold IRA?
A gold IRA has many benefits. It's an investment vehicle that lets you diversify your portfolio. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This makes for an easy transition if you decide to retire early.
The best part about gold IRAs? You don't have to be an expert. They're readily available at almost all banks and brokerage firms. Withdrawals are made automatically without having to worry about fees or penalties.
There are, however, some drawbacks. Gold has always been volatile. Understanding why you invest in gold is crucial. Is it for growth or safety? Is it for insurance purposes or a long-term strategy? Only then will you be able make informed decisions.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce will not be sufficient to meet all your requirements. Depending on the purpose of your gold, you might need more than one ounce.
You don’t necessarily need a lot if you’re looking to sell your gold. You can even live with just one ounce. However, you will not be able buy any other items with those funds.
How much should you have of gold in your portfolio
The amount you make will depend on the amount of capital you have. You can start small by investing $5k-10k. Then as you grow, you could move into an office space and rent out desks, etc. So you don't have all the hassle of paying rent. Rent is only paid per month.
It is also important to decide what kind of business you want to run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
You won't get a monthly paycheck if you work freelance. This is because freelancers are paid. You may get paid just once every 6 months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k to $2k of gold, and then growing from there.
What is the Performance of Gold as an Investment?
Supply and demand determine the gold price. It is also affected by interest rates.
Due to the limited supply of gold, prices for gold are highly volatile. You must also store physical gold somewhere to avoid the risk of it becoming stale.
How can you withdraw from an IRA of Precious Metals?
You first need to decide if you want to withdraw money from an IRA account. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. If you choose this option, you'll also need to consider taxes owed on the amount withdrawn.
Next, you'll need to figure out how much money you will take out of your IRA. The calculation is influenced by several factors such as your age at withdrawal, the length of time you have owned the account and whether or not you plan to continue contributing to retirement plans.
Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Once the calculations have been completed, it's time to open a brokerage accounts. To encourage customers to open accounts, brokers often offer signup bonuses and promotions. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage areas will accept bullion, while others require you to purchase individual coins. Before you choose one, weigh the pros and cons.
Because you don't have to store individual coins, bullion bars take up less space than other items. But you will have to count each coin separately. However, keeping individual coins in a separate place allows you to easily track their values.
Some people prefer to keep coins safe in a vault. Others prefer to store them in a safe deposit box. Regardless of the method you prefer, ensure that your bullion is safe so that you can continue to enjoy its benefits for many years.
Statistics
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement accounts
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
bbb.org
investopedia.com
How To
Tips for Investing In Gold
Investing in Gold is a popular investment strategy. This is due to the many benefits of investing in gold. There are many ways to invest gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before you purchase any type or gold, here are some things to think about.
- First, make sure you check if your country allows you own gold. If it is, you can move on. Or, you might consider buying gold overseas.
- The second thing you need to do is decide what type of gold coins you want. You can go for yellow gold, white gold, rose gold, etc.
- The third factor to consider is the price for gold. Start small and move up. When purchasing gold, diversify your portfolio. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- Remember that gold prices are subject to change regularly. It is important to stay up-to-date with the latest trends.
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By: Kevin Helms
Title: Alliance Bernstein Analyst Advises Investors to Buy Bitcoin Dip Amidst SEC Approval of Spot Bitcoin ETFs
Sourced From: news.bitcoin.com/analyst-advises-investors-to-buy-the-bitcoin-dip-predicts-asymmetric-upside-ahead/
Published Date: Wed, 17 Jan 2024 02:30:02 +0000
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